Is Apple Inc. (AAPL) the Most Active US Stock to Buy According to Hedge Funds?

March 17, 2025

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We recently published a list of 10 Most Active US Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other most active US stocks to buy according to hedge funds.

Over the past five years, the U.S. stock market has experienced growth in trading volume. According to data from the World Bank, the total value of stocks traded in the U.S. increased from approximately $36.3 trillion in 2019 to over $44.3 trillion in 2022. The upward trend reflects the U.S. stock market’s growth over the years. As of March 11, 2025, the total consolidated volume reached 19.3 billion shares, with major exchanges like NYSE and NASDAQ contributing significantly to this activity.

Empirical studies have explored the relationship between trading volume and stock returns. For example, research on the BRVM found a directly proportional relationship between stock returns and trading volume. This means that when a stock sees an increase in volume, it might also experience a corresponding change in its return profile. The practical takeaway is that active stocks often benefit from greater investor interest, which can, in turn, drive short-term price momentum.

While trading volume remains strong, the broader U.S. stock market is currently facing heightened volatility and economic uncertainty. The broader market index has dropped nearly 9% over the past month, reversing its gains from late 2024. This decline is largely driven by trade tensions and policy shifts, with new tariffs imposed on imports from China, Mexico, and Canada adding to investor concerns.

The uncertainty surrounding these trade policies has led to increased caution among investors and a shift in investment strategies. Major indices, including NYSE and NASDAQ, have shown instability, while the Magnificent Seven tech stocks have collectively fallen by 14% in the last three weeks. Financial institutions have adjusted their forecasts in light of these developments. Goldman Sachs, for instance, has reduced its year-end target for the broader market from 6,500 to 6,200, citing elevated policy uncertainty and tighter financial conditions.

While the market may face challenges, hedge funds continue to target stocks that remain highly active and resilient in volatile conditions. They often focus on highly active stocks due to their liquidity, volatility, and potential for short-term gains. Active stocks, characterized by high trading volume, provide hedge funds with the flexibility to enter and exit positions efficiently without significantly impacting prices. This makes them ideal for strategies such as momentum trading, arbitrage, and algorithmic trading. For instance, data from a leading electronic platform for the trading of bonds indicated that hedge funds’ share of trading volumes in the European government bond (EGB) secondary market surged from 26% in 2018 to 56% in 2023. This substantial increase underscores hedge funds’ preference for markets where high trading volumes allow for swift entry and exit positions. ​Given this, we will take a look at some of the most active stocks to buy.

To identify the 10 most active US stocks to buy according to hedge funds, we used the Finviz stock screener to filter stocks with an average trading volume above 2 million shares. These stocks were then sorted by volume to highlight the most actively traded ones. Next, we ranked them based on Q4 2024 hedge fund sentiment data from Insider Monkey, analyzing recent 13F filings to determine which stocks had the highest institutional interest. The stocks below are ranked according to the number of hedge fund holders.

At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Is Apple Inc. (AAPL) the Most Active US Stock to Buy According to Hedge Funds?
Is Apple Inc. (AAPL) the Most Active US Stock to Buy According to Hedge Funds?

A wide view of an Apple store, showing the range of products the company offers.

No of hedge fund holders: 166

Apple Inc. (NASDAQ:AAPL) is a global leader in technology, designing and manufacturing a wide range of innovative products, including iPhones, Mac computers, iPads, and wearables like the Apple Watch and AirPods.

Apple Inc. (NASDAQ:AAPL) has announced a record-breaking $500 billion investment in the U.S. over the next four years. This underscores its commitment to domestic innovation, AI infrastructure, and high-skilled manufacturing. The move includes a new server manufacturing facility in Houston, doubling the U.S. Advanced Manufacturing Fund to $10 billion, and expanding silicon production across 24 factories in 12 states. With production of Apple chips now underway at TSMC’s Fab 21 in Arizona, the company is strengthening its U.S. supply chain while creating thousands of jobs.

Apple Inc. (NASDAQ:AAPL) reported Q1 FY2025 revenue of $124.3 billion, a 4% year-over-year increase, slightly beating estimates despite a 2.7% drop in iPhone revenue to $69.1 billion. The Services division was the standout, growing 14% to $26.3 billion. This helped offset weaker iPhone sales and an 11.1% decline in China revenue. EPS came in at $2.40, exceeding expectations of $2.35.

Overall, AAPL ranks 2nd on our list of most active US stocks to buy according to hedge funds. While we acknowledge the potential for AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.

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