5 Best Day Trading Stocks to Buy in December 2021

We are now into the final week of 2021. Like 2020, this year also had a lot of day trading opportunities. The markets were quite volatile which gave day traders ample opportunities to trade.

While some of the investors prefer a long-term investment approach, many others also like to do day trading. Here are the five best day trading stocks that you can buy in December 2021.

1. Tesla (NYSE: TSLA)

Tesla stock had another memorable year and hit new record highs in the year. The company hit several milestones in the year including on record deliveries. The company’s market cap crossed above $1 trillion which was another milestone as no other automaker has even come closer. Meanwhile, while Wall Street’s opinion is as divided on Tesla, as it was five years back, the stock is a delight for day traders. While some of Tesla’s retail stockholders are the proverbial diamond hands, a strategy that has paid off well over the last three years, it is also among the best day trading stocks.

Tesla is a good day trading stock

Tesla is set to release its fourth-quarter delivery report early next week. RBC expects that the company delivered 285,000 cars in the quarter which would mean a sequential rise of 18% and another quarter of record deliveries for the company.

Tesla is also a favorite stock among WallStreetBets members. The stock hasn’t disappointed fans and has delivered stellar gains over the last decade. Cathie Wood of ARK Invest expects the stock to rise three-fold from these levels by 2025. The long-term story aside, it looks like a good day trading stock to buy especially considering the chances of a Santa Claus rally and the upcoming delivery report.

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2. AMC Entertainment (NYSE: AMC)

While one may have bearish views on AMC Entertainment, which has been the flagbearer of the meme stock trade, it is undeniably a good day trading stock. The stock recently fell to a multi-month low but has since recovered. While Wall Street continues to remain bearish on the stock and expects it to crash, buying support from retail investors, who like to be called “Apes” has helped trigger a recovery in the stock.

AMC is a popular day trading stock on WallStreetBets

To be sure, based on fundamentals, it might not be possible to justify the company’s valuation. However, if you are looking for a day trading stock that is popular on social media, AMC should be on your radar.

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3. Clover Health (NYSE: CLOV)

Clover Health is another good day trading stock. The stock has fallen significantly from its highs and now falls in the penny stock category. The company had to lower the forecasts that it provided during the SPAC merger. Its losses have been swelling and its medical care ratio spiked above 100% in the third quarter even as the revenues increased 153% YoY during the quarter. The company also did a secondary stock offering amid rapidly depleting cash reserves.

CLOV had a tough run in 2021 but gave many day trading opportunities

While 2021 was a dismal year for Clover health stock, it gave ample day trading opportunities especially during the time when WallStreetBets members triggered a short squeeze in the stock.

CLOV is the only Palihapitiya company that is in the penny stock category. While it is currently making losses, like many other startup companies, it expects to be EBITDA positive by 2023. The company expects US Medicare Advantage spending to more than double between 2019 to 2025, and reach $590 billion. The expected increase in Medicare Advantage is positive for companies like CLOV.

The stock looks like a good investment for long-term investors as well as those looking for day trading opportunities. If the management can improve on the profitability metrics, the stock can see much better days ahead.

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4. Robinhood (NYSE: HOOD)

Robinhood stock recently fell to a new all-time low. It is among those 2021 IPOs that have fallen below the IPO price. Wall Street analysts have also been turning bearish on the stock even as Cathie Wood has added more shares after the stock crashed.

The company reported negative growth in the third quarter and Bank of America believes that the company would have a hard time delivering growth. “As individuals see lower or negative returns in their Robinhood accounts and return to their offices, we estimate HOOD’s organic growth and trading activity could face a multi-year headwind as client engagement fade,” said Bank of America in its note.

New product launches could help revive the growth of Robinhood

Robinhood is looking to launch new products like the IRA and also add new cryptos and crypto-related services to the platform. News flow over new products should create good day trading opportunities in HOOD stock.

Bank of America also believes that new product launches will drive the growth of Robinhood. It said, “We believe HOOD’s growth will come in waves, triggered by new product launches and market volatility. New capabilities including future IRA launches and extending trading hours could encourage larger client inflows in future quarters.”

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5. XL Fleet (NYSE: XL)

If you are looking for a day trading stock, you should also check XL Fleet. The company is an electric vehicle play and is targeting fleet and municipal customers in North America. XL Fleet stock came under pressure after it was targeted in a short-seller report. The company denied the report but it nonetheless took a toll on sentiments. The company had $366.7 million worth of cash on its balance sheet at the end of September which should take care of its cash burn in the medium term.

XL Fleet would give many day trading opportunities

XL Fleet should give many day trading opportunities as the company continues to expand its revenue base and signs new deals. In November, the Defense Department awarded it a contract to build prototypes for fuel-saving technology for tactical vehicles. More such deals in the future would help improve the market sentiments towards XL Fleet stock.

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