Stocks have had a strong start to 2024. And volatility has been nowhere to be found, with the VIX failing to eclipse 20 at any point so far this year (although it did temporarily spike higher with the dip in April and again this month). So, given that we’ve been enjoying one of the least volatile market periods of this decade, now’s a good time to look at your portfolio and identify volatile stocks in the event that the market gets choppier down the road.
That’s not to say you can’t own volatile stocks, but keep in mind that stocks that are volatile in periods of market calm will likely be even more volatile in stormy seas.
To screen for the most volatile stocks today, I looked for large-cap stocks with a beta of at least 2—meaning they’re twice as volatile as the general market. And I stuck with U.S. companies since, as with small-cap stocks, volatility and unpredictability are more common in international and emerging market stocks.
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Because beta compares the behavior of a given stock with the market itself, these stocks are wild. In a strong bull market, that can mean they move even faster to the upside, but in times of trouble, they can retreat fast. So it’s best to stay on your toes.
So, without further ado, here are the three most volatile stocks today.
Volatile Stock #1: Coinbase (COIN)
Coinbase is perhaps the best-known cryptocurrency play out there, and it’s been on a tear this year, up more than 68% in 2024.
It’s also down 22% since it came public in 2021. Because it’s a cryptocurrency play, the performance of COIN is heavily levered to the performance of Bitcoin, itself an immensely volatile asset.
Shares are currently within about 5% of their 52-week high after rising 19% in July alone. If you’re a momentum trader, this certainly looks like a promising setup with the stock surging toward recent highs, but if you’re worried about a return of volatility, COIN trades with a beta of 3.4, which makes it the most volatile stock on the list.
Volatile Stock #2: Carvana (CVNA)
With a beta of 3.37, Carvana fell just shy of Coinbase, landing at the second spot on this list.
The company originally gained notoriety for its massive car vending machines, which turned it into a post-pandemic bull market darling. But the stock became an early victim of the subsequent bear market.
Shares lost 99% between August of 2021 (before the bear market even really began for most stocks) and the end of 2022.
But Carvana has come a long way from its doldrums in December of 2022, when the stock was trading at just 4 per share.
Since then, the stock is up more than 3,000% (and 162% in 2024 alone), although it’s still trading at only one-third of its 2021 highs.
With that kind of volatility, it’s frankly a little surprising that it’s only second on this list. Even with mountains of fresh momentum, this volatile stock should be a stay-away for all but the most risk-tolerant investors.
Volatile Stock #3: APA Corp. (APA)
This oil & gas exploration and production company (with a beta of 3.27) was another post-pandemic beneficiary, with shares rising 900% between March 2020 and June 2022 when energy prices went through the roof.
But, like oil prices, shares have yet to return to those 2022 highs. APA is currently trading 35% below its 2022 apex, down 20% in the last year, and 13% in 2024.
The performance of APA is tied closely to oil prices, so any time there’s volatility in the oil market, APA will likely be a volatile stock.
Unfortunately, unlike the other two volatile stocks on this list, APA doesn’t even have short-term momentum in its favor as it’s currently trading below its 200-day moving average, which makes it the least compelling name on the list for momentum traders.
Bottom Line on the Most Volatile Stocks Today
With momentum-driven stocks, there’s no telling when the music may stop, and if the bull market continues onward, it’s possible (or even probable) that stocks like COIN and CVNA will be trading even higher.
But if you’re a longer-term investor looking for stability, these volatile stocks (especially CVNA) are probably best avoided.
Do you own any volatile stocks in your portfolio that used to be strong performers? How are you approaching them now?
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