5 Best Swing Trading Stocks to buy for Q3 2024

By:

Crispus Nyaga

Crispus is a Financial Analyst for Invezz covering the stock, cryptocurrency and forex markets. He’s an experienced analyst with more than 8 years of industry experience.... read more.

 & 

James Knight

James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.

Updated: Jul 5, 2024

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Swing trading is different from investing and day trading in that participants leave trades open for a few days. In scalping, traders buy and sell stocks within seconds while in investing, they hold them for weeks or months.

A good stock to swing trade should have several characteristics like liquidity, have numerous catalysts, and is widely followed and commented by analysts. Ideally, most stocks can be swing traded. So, here are some of the most popular ones.

What are the top swing trade stocks to buy?

The best stocks for swing trading are large companies that are popular with investors, often those with the highest market caps. This indicates lots of volume and the chance for short term volatility. Here are our expert picks for the top ten swing trade stocks:

1. Tesla (NASDAQ: TSLA)

• Market Cap: $565billion
• Revenue Growth: 10%
• Net Profit Margin: 14
• P/E Ratio: 45
• Average Volume: 89 million
• Stock Price: $177

Tesla is one of the best companies to swing trade because of its strong volume and the fact that the electric vehicle industry is constantly making headlines. 

According to Yahoo Finance, it had an average volume of over 89 million shares. It is also one of the most discussed companies in trading platforms like StockTwits and Reddit. Most importantly, it has some of the biggest volumes in the options market.

Tesla’s business has gone under pressure in the past few years as the number of competitors in the industry has jumped. Some of the most notable names in the industry are likes of BYD, Nio, and XPeng. 

2. Nvidia (NASDAQ: NVDA)

• Market Cap: $3.08 triillion
• Revenue Growth: 208%
• Net Profit Margin: 53
• P/E Ratio: 73
• Average Volume: 463 million
• Stock Price: $128

Nvidia has grown to become the biggest semiconductor in the world by market cap. It has also become the third-biggest company globally after Microsoft and Apple.

Nvidia’s growth has been propelled by the ongoing demand for artificial intelligence chips, which has led to an unprecedented growth in data centers. For example, the company’s revenue in the first quarter of 2024 was higher than what it did in the whole of 2019. 

Nvidia is a great company to swing trade because of its high liquidity as evidenced by its substantial daily volume. It is also one of the most popular names in the investing and trading community and is constantly in the headlines. 

3. Apple (NASDAQ: AAPL)

• Market Cap: $3.2 triillion
• Revenue Growth: -0.90%
• Net Profit Margin: 26
• P/E Ratio: 33
• Average Volume: 64 million
• Stock Price: $213

Apple has grown to become the biggest company in the world, thanks to its superior products, great balance sheet, and its large total addressable market. It has over $67 billion in cash on hand while the iPhone is widely-rated as the best smartphone in the industry. 

Apple is a highly profitable company although its revenue growth is slowing. This slowdown is mostly because demand for iPhones, which is its most important product. Apple has also not launched another breakthrough product like the iPhone.

Most importantly, its services business has found some substantial headwinds. For example, Apple has been sued by the Justice Department for maintaining a monopoly power in the industry. The EU is investigating Apple for its AppStore issues.

Still, Apple is still a great company for swing traders because of its high daily volume and the fact that it makes regular headlines.

4. Salesforce (NYSE: CRM)

• Market Cap: $228 billion
• Revenue Growth: -0.90%
• Net Profit Margin: 15
• P/E Ratio: 42
• Average Volume: 5 million
• Stock Price: $235

Salesforce is a leading company that offers multiple services to other businesses. It is the biggest player in the CRM industry. And in the past few years, it has expanded its business to other industries like communication (Slack), business intelligence (Tableau), and automation (Mulesoft).

Salesforce is a great company because of its potential for higher margins. Its gross margin stands at about 76% while its net margin is 15. The company has a room for more margin expansion if it stops its acquisitions. Its net income in the trailing twelve months stood at over $5 billion. 

It also has a strong balance sheet with over $17.6 billion in cash and $13 billion in debt. It is a good company to swing trade because of its high daily volume and relative volatility.

5. Uber (NASDAQ: UBER)

• Market Cap: $152 billion
• Revenue Growth: 14%
• Net Profit Margin: 3.6
• P/E Ratio: 117
• Average Volume: 18.6 million
• Stock Price: $73

Uber is another great company to swing trade. It is a disruptive company that popularized the idea of ride hailing and sharing. Today, the company offers more services like food delivery. It offers its services around the world.

Uber’s business has been growing in the past few years such that its TTM revenue stood at over $38 billion. It has also started to turn a profit, helped by its scale and the decision to slow its promotions.

Uber has the biggest market share in the hailing industry and is still growing. It is an ideal company to day trade because of its high volatility and its substantial volume.

Where to buy the best swing trade stocks

You can swing trade stocks with any online stock trading platform, but note that a conventional stockbroker might only allow you to “go long” and benefit from the upswing by buying shares. To get the full benefit of swing trading you need a CFD broker where you can go long and short.

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What are swing trade stocks?

Swing traders look for volatility. The specific sector doesn’t matter much when looking for ideal stocks for swing trading, it’s all about choosing the right stocks for day trading. Remember, the goal isn’t a long-term investment, so you don’t need to be too bothered about company fundamentals.

Instead of looking at statistics that impact a company’s long-term prospects, identify stocks by looking at stock charts, market conditions, and other signs that could influence a stock’s short-term price action.

Good swing trade stocks have three key characteristics:

• A catalyst: an event that is very likely to trigger powerful moves in stock prices. This could be power changes in company leadership, clinical trials by a pharmaceutical corporation, or unexpected earnings
• Volume: most stocks suitable for swing trading show more volume than usual
• Volatility: volume often goes hand in hand with significant volatility, and volatile stocks allow swing traders to profit from big, short-term moves using technical analysis.

Is swing trading stocks a good idea?

Compared to some trading strategies, swing trading is not very time-intensive. The trader may, for instance, just spend two to three hours buying and selling in a day.

Applying the swing trading strategy in the stock market is all about timing market moves and making short-term trades for quick profits. The stock trading returns are quick, and with a well-put-together, diversified portfolio, it is possible to benefit through the ups and downs of the stock market.

The best part is that the stock market offers swing traders multiple investment vehicles to maximise their opportunities. For instance, you could trade single stocks, stock groups bundled in funds, large-cap stocks, growth stocks, and many others.

However, like all other financial trading strategies, swing trading carries significant risk, especially when you leave your trade positions open overnight. Good risk management of your swing trades is thus essential.

Usually, a stock will trend in a precise direction. Over time, the share price highs get higher or the lows consistently get lower. However, sometimes the direction and/or momentum may change abruptly. As a swing trader, you need to spot these opportunities quickly. However, you should never place your trades blindly. Use indicators like the moving average to confirm trends and breakouts before entering into a trade.

It’s a good idea for novice swing traders to learn how to read trading charts and interpret patterns. Most importantly, learn how to set good stop-loss levels. Doing so can save you from losing money when things don’t go in favour of your trades.

Methodology: How we choose the best swing trading stocks

At Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.

• Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
• Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
• Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
• Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
• Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
• Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.

Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.

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