It can be fun to invest in some speculative stocks. But it should go without saying that those stocks shouldn’t make up the bulk of your portfolio. In fact, it’s important to find a few good stocks that make up the base of your portfolio. These are momentum stocks that are in a strong uptrend.
One way to find such stocks is to look at the most active stocks (or volume leaders). Shares of these companies are among the most traded or have the highest dollar volume of shares traded in a given trading day.
Any stock may crack this list from time to time (for example, when there’s new news about the company). However, stocks tend to find their way on this list consistently that bear watching. That’s because this list indicates that there is pressure among investors to buy or sell the stock. And that makes an investor’s decision very simple.
And that’s the reason we created this special presentation. The stocks on this list are among the most actively traded stocks on the market today. They also share a similar quality. They are coming off strong years in 2020 and seem to be showing some consolidation for another leg up.
Quick Links
- Nucor
- Square
- PayPal
- Nvidia
- Home Depot
- Deere & Company
- Microsoft
#1 - Nucor (NYSE:NUE)
The first stock on this list is Nucor (NYSE:NUE) for a simple reason. Infrastructure’s been in the news recently and Nucor is the largest steel producer in the United States. It’s also the largest “mini-mill” steelmaker.
At the time of this writing, it’s unclear what form the infrastructure bill will take. However, it’s very clear that the focus will remain on those areas that are typically thought of as infrastructure. And that will be a catalyst for NUE stock.
Not that it needs much of a boost. NUE stock is up 114% in the last 12 months. But that’s a little deceptive. That’s because the stock is up 49% since the beginning of the year. That could have some investors feeling that the good news is all priced into the stock. But the company reports earnings in late April and they’ve been making a habit of surprising analysts to the upside. If they do it again, the stock may bust out of the range it’s been in since late March.
About Nucor
Nucor Corporation engages in manufacture and sale of steel and steel products. It operates in three segments: steel mills, steel products, and raw materials. The Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling structural steel products; bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and engineered special bar quality products; and engages in the steel trading and rebar distribution businesses.
Read More - Current Price
- $148.17
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 6 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $190.57 (28.6% Upside)
#2 - Square (NYSE:SQ)
When JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon opined about the emerging threat that financial technology (fintech) companies presented, he may well have had Square (NYSE:SQ) in mind. Square has become the payment processor of choice for a host of businesses who use Square as their payment processor.
And Square is taking direct aim at the big banks by adding automatic clearing house (ACH) transfers to its invoices. Instead of the typical 3% fee that consumers and businesses are charged for a debit or credit card transaction, Square will only charge 1% for an ACH transaction. For restaurants and retailers that operate on ultra-tight margins, this is a very big deal.
It’s also a reason why SQ stock should have much higher to climb. In the last 12 months, SQ stock has climbed 303%. However, it would be up even higher but it was caught up in the tech selloff. The stock made one more run at that $275 number but has been beaten back. But a strong earnings report may be the catalyst for the stock to move to new heights.
About Block
Square, Inc provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions.
Read More - Current Price
- $89.69
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 24 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $91.18 (1.7% Upside)
#3 - PayPal (NASDAQ:PYPL)
If we’re going to mention Square, we shouldn’t ignore PayPal (NASDAQ:PYPL). PayPal is still a recognized leader in the digital payment platform. And PYPL stock is beginning to show the effects of pent-up demand as consumers are beginning to spend.
Like Square, PayPal is targeting services once left to traditional banks. The company already offers debit and credit cards. And with its Working Capital program, PayPal offers small businesses a low-cost way to obtain access to a business loan in minutes.
And PayPal has recently started to accept cryptocurrency, which is providing even more of a catalyst for the stock. PYPL stock is up 135% in the last 12 months. However, it has slowed down to be growing 13% in 2021. Like many tech stocks, it was bounced off its high near $300 in February and has yet to make another run at it. However, PayPal reports earnings in early May and the stock looks to be consolidating in advance of that report.
About PayPal
PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.
Read More - Current Price
- $84.74
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 15 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $83.45 (1.5% Downside)
#4 - Nvidia (NASDAQ:NVDA)
The global chip shortage is going to create a supply and demand problem for the foreseeable future. That’s one reason to invest in Nvidia (NASDAQ:NVDA). In fact, two analysts give NVDA stock an $800 price target which would be an increase of over 30% from its current level.
But it shouldn’t be your only reason. Fortunately, it’s not. At the company’s recent Investor Day, the company showcased new data center central processing unit (CPU). This should help the company build on the record $6.7 billion in data center revenue it earned in 2020.
NVDA stock is up 110% in the 12 months ending April 20. But the stock is up just 15% in 2021. That’s due to Nvidia being swept up in the broad tech sell-off in March.
Investor Day presentations are typically a strong precursor of a company’s earnings. In the case of Nvidia, that suggests the company will be delivering a strong report in May. It also gives investors reason to jump on the stock, as it’s likely to move higher.
About NVIDIA
NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.
Read More - Current Price
- $145.89
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 40 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $154.63 (6.0% Upside)
#5 - Home Depot (NYSE:HD)
The Home Depot (NYSE:HD) is another stock that makes the list of stocks that show no signs of cooling down. Home Depot was a massive pandemic winning stock as homeowners decided it was time to do some major home improvement. This gave the company a chance to put its omnichannel model to work.
In 2019, Home Depot was making a pivot to increase their e-commerce business including home delivery. At the time it was seen as a bit of a risk. After all, it didn’t seem to be something that people were clamoring for in the area of home improvement. That all changed in 2020 and HD stock was a major beneficiary.
In the last 12 months, HD stock is up 56%. And in 2021, the stock has gained 22% including 11% in the 30 days ending April 20. That’s impressive growth. And the company has some additional catalysts that should keep it moving forward.
One that’s particularly exciting is its purchase of HD Supply Holdings. This will make Home Depot the premier provider of maintenance, repair, and operations products for multifamily and hospitality end markets.
About Home Depot
The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.
Read More - Current Price
- $399.98
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 23 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $426.00 (6.5% Upside)
#6 - Deere & Company (NYSE:DE)
Strong commodity prices were a key reason that Deere & Company (NYSE:DE) shattered expectations in its most recent earnings report. And according to FocusEconomics, commodity prices are expected to climb 10.6% on a year-over-year basis in the fourth quarter of 2021.
However, beyond the cyclical nature of commodities, Deere would appear to have two catalysts with the infrastructure bill expected to increase activity in both the agricultural equipment and construction sectors.
DE stock is up 169% in the last 12 months and 38% in 2021. The consensus price target for Deere is $334.25 which is about 10% below the stock’s price (as of April 20). However, this is a case where the company is also rated as a buy with at least one price target that suggests the stock could climb as high as $425.
Investors have a while to wait for earnings. Deere is traditionally one of the last companies to report.
About Deere & Company
Deere & Company engages in the manufacture and distribution of various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment provides large and medium tractors, combines, cotton pickers and strippers, sugarcane harvesters and loaders, harvesting front-end equipment, pull-behind scrapers, and tillage and seeding equipment, as well as application equipment, including sprayers and nutrient management, and soil preparation machinery for grain growers.
Read More - Current Price
- $405.11
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 12 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $420.69 (3.8% Upside)
#7 - Microsoft (NASDAQ:MSFT)
By the time you read this, Microsoft (NASDAQ:MSFT) may be part of the illustrious $2 trillion market capitalization club. And it’s not because people are suddenly buying more of the company’s enterprise software and personal computing products (although that did happen during the pandemic).
Rather, Microsoft is an example of a company that keeps reinventing itself to the delight of investors. The company made a hard pivot from desktop computing to cloud computing. And with several high-profile contracts in hand, including the 10-year, $10 billion contracts with the U.S. Department of Defense, you’d have to say it’s been a successful pivot. The need for support tools such as Microsoft Teams for remote work and an online school provided an additional tailwind for MSFT stock.
MSFT stock is up 47% in the last 12 months. Growth has slowed to “only” 18% in 2021 and 9% in the last month (ending April 20). Investors will want to pay attention to the company’s next earnings report at the end of April. However, there seem to be many catalysts that suggest Microsoft will continue to reward investors.
About Microsoft
Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.
Read More - Current Price
- $415.49
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 27 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $503.03 (21.1% Upside)
Earnings season is a good opportunity to evaluate your portfolio and sift out the winners and losers. In a volatile market like the one that we’re in, it’s understandable to find a few stocks that can provide a port in the storm.
The stocks in this presentation can serve that role quite well. In addition to being some of the most active stocks in the market, these stocks have all shown strong growth in 2020 that has carried over into 2021.
And many of the companies in this presentation are expected to report strong earnings that may provide a catalyst for the next leg higher.
If you’re looking to have a one-stop resource for finding the most active stocks, you should give strong consideration to subscribing to MarketBeat All Access. In addition to finding a list of the most active stocks, you’ll find stock screening tools and various other tools that will help you identify profitable stocks.
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