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.
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 thats 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.
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. That's especially true now that earnings season is officially underway. And when there's a big catalyst, there's often a trading opportunity.
Without further ado, heres a look at today's stocks.
Nearest Resistance: $20.50
Nearest Support: $19
Shares of small-cap homebuilder KB Home (KBH) are up more than 7% this afternoon, following first-quarter profits that were bigger than analysts expected. The firm saw earnings of 12 cents per share for the first quarter, vs. an average earnings estimate of 8 cents per share. Rising housing prices were the catalyst for the earnings beat at KBH.
KBH gapped up hard this morning, shoving their way back in the uptrending price channel that's been in play since November. While this homebuilder broke down through the bottom of the channel earlier this month, today's move erases that downside. Even though re-entering the trend channel isn't that exciting, it does make higher prices look likely in this stock.
Nearest Resistance: N/A
Nearest Support: $5
Catalyst: Technical Setup
Mid-cap communications stock Frontier Communications (FTR) is up 1.3% on high volume this afternoon, following through to new highs after breaking out above $5 resistance on Monday. That price action makes $5 a new support level for shares, and makes more upside the likely trade for shares.
Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. If you decide to be a buyer here, I'd recommend keeping a stop under the lower support level at $4.90.
FTR still pays out a whopping 7.6% dividend yield at current prices.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.