If you’re about to expand your investment horizon, you should check out the top-volume stocks in the US. While some may define ‘top US stocks’ differently, most consider volume to be a significant indicator of a stock’s performance - when correlated with price.
Trading Volume: Definition & Meaning
The trading volume of a stock corresponds to the number of times a stock has been bought and sold within a given time frame. For instance, say, 200 stocks of a company were purchased and subsequently sold — during the same trading day. It would indicate a stock volume of 400, even though only 200 stocks were involved in the trade.
Additionally, while stock trading data is available on a daily, real-time basis, assessing it over a longer duration can benefit investors. Doing so gives them an idea of how the volume changes co-relates to price, helping them decide whether to hold or sell stocks.
The US stock market’s volume data can give you valuable insights into several essential investment parameters, making your investment decisions easy. Here are a few fundamental insights you can glean from stock market volumes:
An upward movement of stocks and an upward shift in prices signal strength and momentum. It may confirm a trend and help you make informed decisions.
Stocks with higher trade volumes reduce liquidity risks for the investor. It implies that if you wish to sell your investment, you can do so easily as there are more buyers for the stock in question.
If the stock's trading volume keeps rising, but the price starts decreasing, it may be wise to sell holdings & cushion yourself from a possible loss.
Pro-tip: Before you start sifting through top-volume stocks in the US, remember that stock volumes need contextual assessment. In other words, while substantial volume numbers could be a stock assessment parameter, they have to be correlated with the stock price and general market conditions.
Every stock traded on the US market gets registered in the daily volume data. All US stock exchanges, like NASDAQ and NYSE, publish volume data for each trading session. You can assess this data on the stock exchange websites, news sites, or any other third-party app/site.
Stock volume data is represented using candlestick charts with volume data for a particular time frame. For more straightforward correlations, such charts also display stock prices & changes in prices for each stock option.
*Disclaimer: Volume and price data represented on the table corresponds to figures as on 6.12.2022.
Known for its EVs and energy generation/storage units, Tesla is a key player in the US stock market. Starting with a market value of $117 Billion in January 2020, Tesla stocks rose to $658.39 Billion by year-end and had crossed the $1 Trillion mark by October 2021. This meteoric rise can be due to the rising demand for EVs and global tightening emission norms.
As America’s second-largest bank, Bank of America offers a full range of banking, investment, asset management and other services. Despite the economic slowdown in Q3 of 2022, Bank of America recorded a 12% rise in average loan balances and a $13.8 Billion rise in net interest income. The bank is expected to register higher net interest earnings as interest rates keep increasing.
With earnings per share of $1.29 and $90.15 Billion in revenue, Apple comfortably beat industry expectations to secure its place in the list of the top stocks. Despite the present economic climate, Apple managed to secure commendable growth, positioning its stock as a reliable long-term option.
As per Q3 2022 stats, e-commerce giant Amazon's sales figures stand at $127.1 Billion against the previous year's $110.8 Billion mark. Besides the e-com, Amazon Web Services also shows growth potential. With an avg volume of 75.43 Million in the last 65 days, the stock still ranks among the top volume players in the US market.
With fresh investments in clean energy vehicles, EVs and new technologies, Ford’s stock position has received a significant boost. Despite supply chain issues and product recalls, Ford estimates an EBIT (earnings before interest and taxes)of 15% over its 2021 value.
While volume is an essential indicator in the stock market, you must assess volume vis-a-vis other factors to get the full picture. So, constantly evaluate the reasons for trade volumes of top US Stocks.
The 3 major stocks by market cap in the US as of Dec 2022, are Apple, Microsoft and Google. Apple has a market cap of $2.276 Trillion, while Microsoft has a market cap of $1.85 Trillion and Alphabet (Google) has a market cap of $1.22 Trillion.
As such, the most bought stock changes daily as trade volumes fluctuate depending on market conditions. However, that said, as of Dec 2022, Bank of America, Apple, Amazon and Tesla are among the most bought stocks.