BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.
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From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.
Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.
While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.
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These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. And when there's a big catalyst, there's often a trading opportunity.
Without further ado, here's a look at today's stocks.
FedEx
Nearest Resistance: N/A
Nearest Support: $145
Catalyst: Q4 Earnings
Shipping giant FedEx (FDX) is up close to 5% this afternoon, buoyed by positive surprise in fourth-quarter profits. Analysts were expecting earnings of $2.36 per share, but FedEx actually earned $2.46 per share for the quarter.
Today's buying carries bigger consequences than just a post-earnings pop, however. The gap up at the open broke FDX up through long-term resistance at $145. Now FedEx is pressing up against new all-time highs.
This stock looks buyable here, particularly with a stop set at $137.50 support.
ConAgra Foods
Nearest Resistance: $31.50
Nearest Support: $28
Catalyst: Forecast Cut
ConAgra Foods (CAG) is off by 8% this afternoon, selling off after it announced that fourth-quarter earnings later this month would fall short of analysts' expectations. Now, the firm thinks it will report earnings of 55 cents per share, a 5-cent cut from the 60 cents CAG had previously forecast for Wall Street. Despite today's big selloff, shares could still have materially further to fall.
That's because CAG's selling broke shares down through the bottom of the trend line that's been propelling this packaged food stock higher since March. While shares are sitting on weak support at $30.25, a test of the more meaningful $28 price floor looks more likely. Buyer beware.
Adobe Systems
Nearest Resistance: N/A
Nearest Support: $70
Catalyst: Q2 Earnings
Software maker Adobe Systems (ADBE) is up more than 7% this afternoon, following the firm's second-quarter earnings release after the bell yesterday. Adobe earned 17 cents per share in profit last quarter, or 37 cents on an adjusted basis. Analysts were only expecting the adjusted number to come in at 29.8 cents on average. Growing adoption of the firm's Creative Cloud subscription model is getting credit for the earnings beat -- and the stock price jump. The recurring model indicates that Adobe's good fortunes could carry over into future periods as well.
Technically speaking, ADBE is breaking out today on the earnings surprise. Shares cleared a key resistance level at $70, making significant room to the upside for shares to rally.
Even if you missed today's move up, now is a good time to join the buyers.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.
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At the time of publication, author had no positions in the names mentioned.
Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to
TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.Follow Jonas on Twitter @JonasElmerraji
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