12 Most Volatile Stocks to Buy in 2024

A stock with a price moves up and down is considered a volatile stock. Stocks with large price fluctuations mean that they have more room for profit. These stocks are often better choices for expert investors because they can reap huge profits no matter how the stock price fluctuates. But volatile stocks sometimes bring great returns to investors. Before deciding to invest in volatile stocks, we need to understand what stock volatility is and how traders use stock volatility to make profit.

What is a Volatile Stock? 

First, let's explain stock volatility in detail.

Stock volatility can mean all kinds of changes. Most traders regard stock volatility as the number and magnitude of stock price changes in day trading. The more frequently the price changes and the more significant the price rise or fall, the bigger the stock volatility. But for other traders, stock volatility can also mean how often a stock is traded.

The investment community needs to define the boundary of stock volatility clearly. However, when the stock price fluctuates by more than 2%, it can be regarded as a volatile stock. Volatile stocks are generally estimated based on historical data through complex model calculations. Most of the stocks of small and medium-sized enterprises are judged as volatile stocks because of their unstable prices, while they are more easily shocked by the stock market.

This type of stock fluctuates wildly, and the investment risk is higher than others. High risk also means that there may be potentially high returns. So some expert investors prefer to invest in volatile stocks.

Types of Stock Volatility

There are two types of stock volatility: historical volatility and implied volatility.

Historical volatility is also named statistical volatility. It is based on data and measured by the rise and fall of stock prices over a certain period of time in the past.

Implied volatility is the forward-looking prediction of the future volatility of an asset. It is not based on past data but is calculated by forecasting puts and calls. As such, it does not accurately reflect past performance but instead predicts future performance.

How to Calculate Stock Volatility? 

So, how should investors calculate stock volatility?

There are many ways to calculate stock volatility. For example, you can calculate stock volatility by using standard deviation, which is the most common method. By calculating the difference between a stock's price and its average value within a certain period of time, the volatility of the stock can be accurately judged.

In addition, you can also choose to view the stock's maximum drawdown to see its maximum loss over a period of time. Or compare the beta index with the S&P 500 index. When the beta is over 1, the stock is more volatile, and otherwise, the stock price is relatively stable. 

12 Most Volatile Stocks to Buy Now

1. KM Sugar Mills

KM Sugar Mills is mainly engaged in the sugar and brewing industries, and the company has a large sugar production capacity and power generation capacity. According to past data, the fluctuation value of the company's stock price has reached 15% of the market price, far exceeding the boundary of 2%. Last year, the company's stock price skyrocketed three times, with the most significant increase being close to 60% of the stock value. The profit margin is enormous.

2. EasyJet and TUI

EasyJet and TUI are popular airlines. Affected by the pandemic and the impact of blockade measures in various countries, the airline has lost nearly 900 million in the past year, and the number of passengers has plummeted. But with the easing of lockdown policies, tourism has recovered. So the company's stock is worth looking forward to.

3. JD.com (JD)

JD.com is one of the largest e-commerce brands in China. The company's operating model is similar to Amazon, where consumers can buy what they need. In addition, JD also operates a logistics company, and JD Logistics has warehousing and delivery services. Last year, JD.com's stock price fluctuated between $33.17 and $91.19.

4. NVIDIA 

As a world-renowned semiconductor company, NVIDIA's stock price has fallen nearly 30% in the past year. But it has started to recover since April of this year and is now within a percentage point of the S&P 500. With a beta of 2.4, the company is a highly volatile stock that investors could consider.

5. KLA Corp. 

KLA Corporation is another semiconductor stock on our list. Although semiconductors are still affected by geopolitical shocks and chip shortages, KLA has continued to expand its market share in the past year and maintain its leading position in the industry. Due to skyrocketing market demand, KLA's production has exceeded pre-pandemic levels. Analysts at TOPONE Markets predict that the company's earnings per share will grow 16 percent annually over the next five years. The company's stock value can fluctuate wildly, but you can still not deny its potential.

6. Mitchells & Butlers

Mitchells & Butlers is a well-known British caterer with more than 1,700 restaurants, hotels, and pubs in the UK. However, since 2020, the company's O'Neill's, All Bar One, and other brands have announced indefinite closure. The company's capital consumption in recent years has reached 40 million pounds per month. In the first quarter of 2021, the company issued shares to raise funds, and the company's stock price has risen slightly since then.

7. DocuSign

DocuSign provides document digital signature services for businesses and individuals. DocuSign's software can be applied to computers and mobile devices and has more than 1.1 million users in more than 180 countries and regions across the country.

The company's stock has fallen 82 percent over the past year. Today, the company announced that it would lay off 700 employees worldwide. As of the publication of this article, one of the company's founders, Dan Springer, has also been dismissed by the board of directors, reflecting the company's determination to restructure.

The company also struggled to stay strong as the pandemic receded, but the upcoming restructuring in 2023 kept expectations high for DocuSign.

8. Selina Hospitality PLC 

Selina Hospitality PLC is a hotel operator. The company provides hotel services to travelers to meet the needs of people traveling. The company's stock jumped as the travel industry recovered. Last month, it announced a partnership with world-renowned resort operator Mantra, which also attracted investors' attention. Selina Hospitality PLC plans to build health resorts with Mantra in 25 countries and regions around the world.

9. Sun Pharma

Sun Pharma is a multinational pharmaceutical company with major markets in the United States and India. The company focuses on pharmaceutical formulations and active pharmaceutical ingredients. The company's outlook against the backdrop of the pandemic is promising.

10. Aeroclean Technologies Inc.

Aeroclean Technologies Inc. is an air cleaning technology company specializing in indoor air cleaners. The company has supporting software and technical services. The company only entered the market through an IPO late last year, so the upstart's share price has been highly volatile.

In June 2022, the company's stock ushered in a wave of soaring. Because of its unique air purification equipment has been approved by the FDA. This means it becomes a medical-grade air purification device that can kill 99.99 percent of microbes in the air, including covid-19. Against the backdrop of the pandemic, the company has great prospects but is still affected by changes from covid-19.

11. SoundHound AI Inc.

Founded in 2005, SoundHound AI provides audio and speech recognition services to consumers. The company had an IPO in late April this year, which explains its volatility. The company's stock price is now $4.10, which is low in the past year.

Recently, SoundHound AI announced a seven-year cooperation with Hyundai Motor, which made investors very optimistic. Given its share price, analysts at TOPONE Markets believe that now is an excellent time to buy SoundHound AI stock.

12. Carnival

Founded in 1972, Carnival is the largest cruise company in the world, with the largest number of cruise ships and the most extensive customer base in the world. The company had annual revenue of $21 billion before the pandemic started, and today the stock has a market capitalization of about $15.6 billion.

Profit per cruise day has increased by 7.5 percent compared to 2019, and the company has restored 75 percent of its total capacity. Due to the recovery of the tourism industry, we expect the company's profitability to rise by 7%. In the next few years, the company's annual return rate can reach 15%, which is worthy of investors' consideration.

The Importance of Volatility

Stock volatility is an important indicator for detecting the speed and trend of a stock price change. High volatility means that the stock price moves frequently and intensely, while low volatility means that the stock price is relatively stable. Stock volatility makes it easy for day traders to choose their favorite stocks. High volatility means more investment opportunities, more traders, and higher rewards, and day traders tend to prefer such stocks.

At the same time, stock volatility is also an important indicator for you to understand the trend of the entire stock market. Analyzing stock volatility can help you optimize your investment structure and balance risks and goals. This is crucial for investors who want to be able to sell their shares as quickly as possible.

Pros and Cons of Volatile Stocks 

Pros of Volatile Stocks

• Higher Returns: Stocks with high volatility fluctuate greatly in value and have more investment opportunities. They are suitable for investors who want to make quick profits. An extensive price fluctuation range means that volatile stocks have greater profit margins, which can bring investors higher returns than stocks with small and stable value changes.

• Low Costs: Generally, volatile stocks are stocks of small and medium-sized companies. Such stocks have a lower unit price, and investors can invest less money in the early stage to buy stocks.

Cons of Volatile Stocks 

• Higher Risks: However, high returns often come with high risks. For all the benefits of volatile stocks, volatility is a double-edged sword. Volatile stocks can fluctuate quickly and dramatically in value, potentially amplifying losses that can hit you hard when you're unprepared. 

• Be Alert to Sectoral Downtrends: Since companies with large fluctuations are generally small in scale, it is also necessary to be vigilant about the company's operating conditions and the overall situation of the industry. Beware of poor management of the company or the downturn of the industry. 

How Traders Get Profit by Investing in Volatile Stocks? 

1. Define Your Goals. Setting reasonable goals is the first step to success. When you have a clear plan, you can formulate an appropriate investment strategy and prepare for the risks you may take.

2. Choose Stocks That Perform Well. Choosing stocks with good performance can reduce the risk to a certain extent. After all, in addition to your operations, the company's operating conditions and industry trends are also important indicators worthy of reference.

3. Strengthen Risk Management. Volatile stock investment has high risks. In order to avoid huge losses of capital, risk control measures must be carefully considered before operation.

4. Exit in Time After Making Profit. Volatile stocks change rapidly, so profits can turn into losses if you don't exit in time.

Volatile Stocks FAQs

Why Do Stocks Become Volatile?

There are many reasons for stock volatility, such as geopolitics, market supply, and demand, policy changes, etc.

Today's market is a good example. How people tend to live and work is changing in the context of the covid-19 pandemic. Due to changes in people's living habits and technological innovations, earth-shaking changes have occurred in all walks of life. At the same time, governments of various countries are also introducing multiple monetary policies to guide market changes actively. Therefore, the current stock market is extremely unstable, and asset prices fluctuate wildly and change rapidly.

Should I Buy Volatile Stocks? 

Whether to invest in volatile stocks should be determined by an investor's investment style. Generally speaking, volatile stock prices have the fastest growth rate and the highest increase rate. Suitable for day traders who can continuously monitor the trend of stocks.

At the same time, higher volatility means greater risk. Before investing in volatile stocks, you should carefully consider your own risk tolerance. If you are a passive investor, you should still invest in more stable stocks.

How to Find the Most Volatile Stocks?

You can view volatile stocks on the TOPONE Markets' stock list. Remember, higher volatility means greater risk, so do your research before you decide to invest in volatile stocks.

When Should We Sell Volatile Stocks?

When to sell stocks is different for each investor and should be determined case-by-case basis. Generally speaking, when investing in high-volatility stocks, when you find that the stock has a downward trend, you should sell it in time to avoid capital loss.

Final Thoughts

If you are an investor who likes high risk and high return, consider investing in volatile stocks. Stocks with high volatility can provide you with more trading opportunities and higher potential profits. However, you also have the potential to take more significant risks. Therefore, you should carefully research the company before deciding which volatile stock to invest in. Choosing volatile stocks with large trading volumes and good price movements will make your investment more effective. Of course, these are inseparable from solid stock market knowledge and good vision. You can choose TOPONE Markets as your investment partner, and I wish you success!

How to Buy Volatile Stocks on TOPONE Markets:

• Open a live account on TOPONE Markets.

• Find volatile stocks through our stock list or type the specific stock into the search bar.

• Fill in the order ticket to open a buy or sell position. For every transaction of TOPONE Markets, no transaction fee will be charged. The transaction cost for investors lies only in the difference between the buying and selling price of the product.

• Add risk-management controls. TOPONE Markets profit and loss tracking function, especially for stock trading, allows investors to lock in profits and eliminate risks without keeping track of the market.

• Use your technical analysis knowledge for fast-paced operations.