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      Best Stocks for Short Term - Top 5 Picks

      By Fahim Awan

      Published on

      July 14, 2022

      12:03 PM UTC

      Last Updated on

      August 7, 2023

      11:45 AM UTC

      Best Stocks for Short Term - Top 5 Picks

      Despite the emphasis given to long-term stock investments, against immediate volatilities, short-term trading continues to be a highly popular class of investment.

      For those that time their positions correctly, such a form of investment could result in an impressive ‘rags to riches’ tale.

      However, needless to say, retail trading of such a nature may not be everyone’s cup of tea.

      Where the immediate potential of best stocks for short-term gain is high, so is the ever-looming risk of a poorly timed trade decision that could sink one’s capital.

      With this article, we hope to shed light on which are the best stocks for the short term one could consider when specifically aiming in a shorter span of time.

      We present a list of five distinct stocks, each of which is uniquely suited to result in profitability in the near future.

      What Is a Short-Term Investment?

      A short-term investment refers to a financial strategy where individuals or businesses allocate funds into assets with the expectation of achieving returns in a brief period.

      These investments typically span from several days to a few years, contrasting long-term investments that endure for decades.

      Popular short-term options include money market funds, certificates of deposit (CDs), Treasury bills, and short-term bonds.

      The primary goal is to safeguard capital while seeking the best stocks to buy for a quick profit, aiming to preserve liquidity for immediate needs or take advantage of emerging opportunities.

      Short-term investments often involve lower risks compared to long-term commitments, making them suitable for individuals seeking relatively quick and stable gains.

      What Is a Growth Stock?

      A growth stock refers to a company’s equity that has shown and is expected to continue displaying above-average growth rates compared to the broader market.

      These firms typically reinvest their earnings to expand and capitalize on emerging opportunities, driving higher stock prices.

      Growth stocks are often found in innovative sectors such as technology, biotechnology, and renewable energy, and may not necessarily pay substantial dividends.

      Investors seek these best stocks for short-term gain for their potential to deliver substantial capital gains over time, though they also carry higher volatility and risk.

      What Is a Growth Stock - Volatility

      Identifying promising growth stocks demands thorough research and a clear understanding of the company’s growth prospects and market trends.

      How To Find Growth Stocks

      Finding growth stocks involves identifying companies with the potential for substantial expansion in earnings and revenue over time.

      First, focus on industries with strong growth prospects, such as technology or healthcare.

      Conduct thorough research on company financials, analyzing revenue and earnings growth trends.

      Look for consistent, above-average growth rates and a competitive advantage in the market. Consider qualitative factors like innovative products and visionary leadership.

      Examine the company’s scalability and addressable market. Assess management’s track record and growth strategies.

      Monitor industry trends and disruptions that could impact the company positively.

      Diversify your portfolio to manage risk, and invest for the long term, as growth stocks often require patience.

      Best Performing Growth Stocks

      Best-performing growth stocks represent companies that display remarkable expansion and revenue acceleration, outpacing the overall market.

      They are characterized by robust fundamentals, innovative products or services, and consistent earnings growth.

      These growth-oriented firms often exhibit higher risk, but their potential for substantial returns attracts investors seeking long-term gains.

      Success is typically fueled by visionary leadership, effective execution of strategies, and adaptability to market dynamics.

      Investors are drawn to the growth potential and increasing market share of these stocks, as they promise future profitability and appreciation.

      Best Stocks to Buy for Short-Term 2023

      • Short-Term Growth Stock #1: Mullen Automotive

        We begin our list of best stocks for the short term with the exciting electric vehicle company, Mullen Automotive Inc (NASDAQ: MULN).

        In mid-2020, a relatively unknown stock started its ascent, rising from a meager $2 to an impressive $16, catching the attention of investors.

        Since then, this micro-capped company has been experiencing wild fluctuations, leading to substantial profits for some and heavy losses for others, especially among retail traders.

        Currently trading at a mere $0.13, MULN’s price stands over 99% below its 52-week high.

        The volume of nearly 225 million shares further highlights the challenges it faces in maintaining its present valuation.

        Considering these factors, it appears unlikely that the stock will remain at its current level for long.

        Despite the roller-coaster ride, the company’s aspirations are intriguing, as it aims to become a leading player in the electric vehicle market.

        With an innovative approach to car design and battery technology, the company boasts executives with impressive experience at General Motors and Tesla.

        Recent developments have ignited interest in the company and increased demand for its stock.

        Mullen’s majority-owned subsidiary, Bollinger Motors, secured a significant $3 million grant from the state of Michigan.

        The grant was to promote job creation, gaining unanimous approval from the Michigan Strategic Fund Board.

        Additionally, MULN announced a commercial EVs pilot program with the Shoshoni Native American Tribe of Northern California and Nevada.

        It will be serving Nations Distribution at Harrah’s Northern California Resort & Casino property.

        These trigger events are likely to spark further interest in the company and potentially lead to a surge in the MULN stock.

        The market is buzzing with speculation about potential giants associated with MULN’s endeavors.

        As more news surfaces, expect the stock’s volatility to skyrocket, largely influenced by retail traders and the social media frenzy.

        Breakthrough updates and announcements are anticipated to drive the stock price even higher in the coming months.

      • Short-Term Growth Stock #2: Day One Biopharmaceuticals

        The second stock on our best stocks for short term list is the cancer-focused biotech company, Day One Biopharmaceuticals (NASDAQ: DAWN).Day One Biopharmaceuticals - best stocks for short term

        In April 2023, the company made headlines with news of significant phase 2 trial results for the investigational agent tovorafenib.

        They also last month initiated an NDA submission with the FDA for tovorafenib to treat patients with relapsed or progressive pLGG.

        The stock’s target price stands at approximately $40, indicating the potential for further upward movement.

        Although early-phase biopharma stocks like DAWN often involve uncertainty and may raise concerns about long-term returns.

        But, we propose a short-term position on the stock due to its enticing opportunities.

        There is the possibility of substantial gains in the months ahead as the company’s treatment candidate approaches new testing breakthroughs.

        Being a company that currently does not generate earnings, DAWN’s stock price is highly sensitive to future prospects’ announcements.

        This sensitivity is precisely why we are confident in DAWN’s short-term growth potential.

        As developments unfold, investors may realize significant returns in the near future.

      • Short-Term Growth Stock #3: Amazon

        Up next, we present Inc (NASDAQ: AMZN) as one of the best stocks for the short term.

        It is also perhaps one of the most well-known stocks trading in the market, and that is Amazon (NASDAQ: AMZN).

        In an unusual move, Amazon, a giant name in the stock market, has become an attractive option for retail traders seeking the best stocks for short-term gain.

        The last year’s 1-for-20 stock split has significantly lowered its share price from around $2800 to a mere $130, making it accessible to individual traders with lower capital.

        This newfound affordability allows traders to invest in Amazon without having to commit thousands of dollars.

        In the midst of uncertain long-term prospects in the bear market, Amazon still offers potential for short-term gains.

        The stock has experienced a 2% decline over the past 12 months but surged by an impressive 29% in the last three months.

        With various factors such as earnings releases, investments, acquisitions, and strategic shifts, the stock is likely to witness upward swings throughout the year.

        Being a large and dynamic company, Amazon possesses the resources to finance new initiatives, responding effectively to changing market conditions.

        Such developments are expected to boost the stock price, even if only for a short period.

        This rare opportunity to invest in Amazon at a more affordable price presents retail traders with a chance to capitalize on short-term fluctuations and potentially reap significantly.

      • Short-Term Growth Stock #4: JinkoSolar Holding

        The fourth stock on our list of best stocks for the short term is the Chinese photovoltaic producer, JinkoSolar Holding Co., Ltd, (NYSE: JKS).

        In terms of solar panel shipment, the company stands as the world’s largest solar panel manufacturer.Clean Energy Sources - JinkoSolar Holding

        The decision to include a Chinese solar stock like JinkoSolar (JKS) on our short-term gains list might raise eyebrows.

        Typically, during bear trends, investors lean towards more established and stable stocks.

        However, JKS presents a unique opportunity with the potential for substantial short-term gains.

        In the coming months, a dynamic transition is expected due to the wider economic slowdown and inflationary pressures.

        Additionally, with sanctions on Russia impacting energy costs, countries are seeking self-sufficiency in the energy sector.

        This spotlight on the solar industry offers JKS a chance to thrive by providing an alternative energy solution in these challenging circumstances.

        JKS’s stellar performance is recognized through PV Tech’s Q2 ModuleTech bankability report, earning the highest “AAA” category ranking.

        This acknowledgment highlights the company’s excellence in manufacturing and financial indicators, along with its leadership in N-type TOPCon technology.

        Further demonstrating its commitment to sustainable energy development, JKS has joined the IRENA Coalition for Action.

        This affiliation reinforces their dedication to creating a greener future.

        Adding to its accomplishments, JKS has successfully delivered over 220,000 Tiger NEO bifacial 72 modules to the 123 MW Verila Solar Power Plant in Bulgaria.

        That showcases the company’s capability to execute large-scale projects. Although the future remains uncertain, JKS holds promise for retail traders seeking short-term gains.

        Leveraging recent breakthroughs and advancements in the current economic and political climate, JKS stands among the best stocks to buy for a quick profit.

        This makes JKS an attractive option for investors looking to capitalize on these developments.

      • Short-Term Growth Stock #5: ACM Research, Inc

        The last one on our list of best stocks for the short term, but far from being the least is the Semiconductor Equipment & Materials company ACM Research, Inc (NASD: ACMR).

        ACM Research specializes in providing semiconductor industry cleaning equipment to ensure microchip integrity by eliminating contaminants.

        Remarkably, the company has achieved an impressive 76% year-over-year (YOY) sales growth, accompanied by a robust 210% YOY increase in earnings per share (EPS).

        Such a sales surge signifies strong demand while growing EPS without a corresponding sales increase could be attributed to cost-cutting or accounting practices.

        Looking ahead, analysts project an impressive EPS growth of over 42% in the next five years, with estimated growth rates of 13.6% in 2024 and nearly 50% in 2023.

        Despite experiencing a share value decline in 2022, ACMR’s current trading situation represents its most attractive valuation in years.

        Over the last 12 months, the company’s performance has been weak, witnessing a decline of more than 24%.

        However, its quarterly performance of 37% positions it as an attractive stock for potential short-term profits.

      20 of the Best Stocks to Buy for Short-Term 2023

      No. Ticker Company EPS Growth

      Next 5 Years

      Performance (Quarter) Performance (Year)
      1 PLTR Palantir Technologies Inc. 73.00% 156.94% 93.14%
      2 NEWR New Relic, Inc. 68.64% 17.41% 38.39%
      3 TMUS T-Mobile US, Inc. 68.35% -4.15% -4.05%
      4 TTWO Take-Two Interactive Software, Inc. 42.92% 22.27% 14.36%
      5 ARCO Arcos Dorados Holdings Inc. 42.56% 39.07% 52.48%
      6 MTCH Match Group, Inc. 40.00% 28.30% -37.05%
      7 LW Lamb Weston Holdings, Inc. 37.10% -8.04% 29.51%
      8 DAL Delta Air Lines, Inc. 36.30% 30.76% 42.77%
      9 LEA Lear Corporation 35.89% 21.70% 2.18%
      10 LTHM Livent Corporation 30.30% 15.70% -2.89%
      11 CMG Chipotle Mexican Grill, Inc. 24.90% -4.13% 24.98%
      12 LLY Eli Lilly and Company 24.02% 11.65% 37.43%
      13 DIS The Walt Disney Company 21.26% -12.90% -16.09%
      14 LRN Stride, Inc. 20.00% -9.27% -13.03%
      15 VTLE Vital Energy, Inc. 10.49% 14.41% -40.44%
      16 SMCI Super Micro Computer, Inc. 10.00% 221.15% 525.00%
      17 SWN Southwestern Energy Company 10.00% 26.72% -8.64%
      18 WFC Wells Fargo & Company 6.67% 13.17% 4.19%
      19 DG Dollar General Corporation 5.25% -23.47% -32.20%
      20 IT Gartner, Inc. 4.60% 11.81% 29.55%

      How To Find Growth Stocks

      • Understanding Growth Stocks

        Growth stocks are shares of companies with high potential for revenue and earnings expansion. Identifying them requires a grasp of their key characteristics.

      • Analyze Financial Performance

        Evaluate a company’s past financial performance and growth trends. Look for rising revenue, increasing earnings, and improving profit margins.

      • Research Market Trends

        Study industry trends and market demand. Growth stocks often emerge from sectors experiencing rapid growth and disruption.

      • Assess Competitive Advantage

        Choose companies with a strong competitive advantage, unique products, or innovative services that set them apart from rivals.

      • Evaluate Leadership and Vision

        Examine the management team’s expertise and track record. Visionary leadership is crucial for sustainable growth.

      • Check Valuation

        Consider growth prospects against the current stock price. Avoid overvalued stocks to ensure a reasonable entry point.

      Should You Buy Growth Stocks?

      • Risk And Reward

        Buying growth stocks entails higher risk but offers the potential for significant returns. Weigh your risk tolerance against investment goals.

      • Diversification

        Allocate a portion of your portfolio to growth stocks while diversifying across other asset classes to reduce overall risk.

      • Time Horizon

        Investing in growth stocks requires a longer time horizon. Avoid them if you need immediate returns or have a short-term goal.

      • Market Conditions

        Assess market conditions and economic outlook. Growth stocks perform better in bullish markets.

      • Research And Due Diligence

        Thoroughly research each company before buying its stock. Due diligence is essential for making informed decisions.

      • Consider Your Strategy

        Decide if you’re an active trader seeking short-term gains or a long-term investor focused on sustainable growth.

      Short-Term Investments: Safe But Lower Yield

      Short-term investments offer a secure haven for risk-averse investors seeking liquidity and capital preservation.

      While they may not provide the highest returns, their stability, and relatively quick maturity make them attractive options. Here are five popular short-term investment avenues:

      • Short-Term Corporate Bond Funds

        These funds invest in bonds issued by corporations with maturities typically ranging from one to five years.

        They offer higher yields than government bonds but with slightly more risk.

        Still, the diversification within the fund mitigates individual credit risk.Short-Term Corporate Bond Funds

      • Money Market Accounts

        Money market accounts are low-risk, highly liquid investments offered by banks.

        They provide a yield comparable to savings accounts but may offer check-writing privileges and ATM access, making them an accessible option for short-term needs.

      • Cash Management Accounts

        Cash management accounts are a hybrid of checking and savings accounts, offering attractive interest rates and services like bill payments and debit cards.

        They combine the features of various short-term investment vehicles.

      • Short-Term U.S. Government Bond Funds

        Backed by the government’s credit, these funds invest in short-term Treasury securities, making them among the safest options.

        While yields are lower compared to riskier assets, they remain a reliable choice for capital preservation.

      • No-Penalty Certificates of Deposit

        These CDs offer flexibility by allowing early withdrawals without penalties.

        Although they may have slightly lower yields than traditional CDs, the absence of penalties makes them ideal for uncertain short-term plans.

      Best Investments for Short-Term Money

      When considering short-term investments, it’s essential to focus on liquidity, safety, and modest returns. Several options suit this purpose:

      • High-Yield Savings Accounts: These accounts offer better interest rates than regular savings while maintaining easy access to funds.
      • Certificates of Deposit (CDs): With fixed terms and higher interest rates, CDs provide a safe option for short-term investors.
      • Money Market Accounts: These accounts invest in low-risk securities, offering competitive returns and flexibility.
      • Short-Term Bonds: Government or corporate bonds with short maturities can provide stable returns.
      • Treasury Bills (T-Bills): Backed by the government, T-Bills are low-risk and suitable for very short durations.

      What Makes a Good Short-Term Investment?

      When evaluating short-term investments, consider these key factors:

      • Low Risk: Preserve capital by opting for low-risk options, like FDIC-insured accounts or highly rated bonds.
      • Liquidity: Easy access to funds ensures you can capitalize on opportunities or handle emergencies.
      • Returns: Although modest, aim for higher returns than traditional savings accounts.
      • Timeframe: Choose investments with maturities aligning with your short-term financial goals.
      • Diversification: Spread your funds across different investments to reduce risk.

      An Alternative to Chasing the Best Stocks

      Instead of chasing individual stocks, consider these alternatives for a diversified approach:

      • Index Funds: These funds track the overall market, providing instant diversification.
      • Exchange-Traded Funds (ETFs): Similar to index funds, ETFs trade on stock exchanges and offer flexibility.
      • Mutual Funds: Managed by professionals, mutual funds pool money from multiple investors for diverse portfolios.
      • Real Estate Investment Trusts (REITs): Invest in real estate without buying property directly.
      • Robo-Advisors: Automated platforms that manage your investments based on your risk tolerance and goals.


      Every trader dreams of fulfilling a rags-to-riches story with a perfectly timed investment that results in a phenomenal capital shoot-up.

      Despite long-term sustainability concerns, such a trader is primarily concerned with immediate price jumps, regardless of whether or not the hype is substantiated.

      To realize this goal, the best option at one’s disposal is a portfolio that consists of highly promising stocks that have strong indicators.

      Each of the stocks aforementioned would ensure investors’ exposure to rocketing share prices that we anticipate on the basis of various fundamental metrics.


      Is It Smart to Invest Short-Term?

      Short-term investing can be enticing for quick gains, but it carries higher risks due to market volatility.

      It suits experienced investors who can accurately time the market and handle potential losses. Novices may find long-term investing more stable and less stressful.

      Are Short-Term Stocks Profitable?

      Short-term stock trading can yield profits if executed skillfully. Traders focus on price fluctuations and capitalize on short-lived trends.

      Success demands thorough research, analytical tools, and a disciplined approach. However, it’s important to be aware of potential losses and stay informed about market developments.

      How Do I Find the Best Stocks To Buy?

      Finding the best stocks for the short term requires diligent research and analysis.

      Start by examining a company’s financial health, growth potential, and industry trends.

      Use fundamental and technical analysis, study market sentiment, and follow reputable financial news sources.

      Diversify your portfolio to manage risk effectively. Seek advice from financial experts when needed.

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