Identifying the most volatile stocks and cryptos on the market is relatively easy. For those who use metrics, investors can use a given stock or crytpo’s beta to determine how volatile it is, relative to the overall market. A beta of 1.0 indicates that the shares in question move precisely in unison with the market. A beta lower than 1.0 shows less volatility, with anything higher than 1.0 indicating more volatility.
There is no equivalent metric in crypto. Instead, to measure volatility, you have to look at price charts, identify price movements, and make the best guess estimate at volatility. Someone has done that here.
Considering volatility when investing in stocks and cryptos is a good idea. Volatility and risk are correlated, informing individual investment styles. Consequently, this list of highly volatile stocks and cryptos below will appeal to risk-seeking investors.
|SUP||Superior Industries International||$4.79|
Direct Digital (DRCT)
Direct Digital (NASDAQ:DRCT) is the highest-beta stock on this list, and heads off our discussion. The Houston-based firm provides advertising technology that helps buyers and sellers of digital ad space optimize offerings.
DRCT stock has a 4.98 beta, meaning it moves roughly five-times as quickly as the market. The result is significant gains and big losses, depending on which direction the market moves on a given day, on average. In January alone, DRCT stock surged from $2.56 to $5.75. However, since then, it has fallen steadily, giving back those rapid gains and now trading around the $3 level.
Direct Digital offers a lot to like for investors from a fundamentals perspective. In 2021, Direct Digital brought in $38.14 million in revenue, leading to a $1.5 million loss. However, revenues increased drastically in 2022 to $89.36 million, and the company posted net income of $4.17 million. That’s a reasonably strong trajectory over a year in which overall advertising was shaky due to economic headwinds and concerns.
Readers can probably guess that there isn’t much substance to Tamadoge (TAMA-USD) by simply understanding a bit about the blockchain project. It’s inspired by other Shiba Inu-themed projects that cropped up following the success of Dogecoin (DOGE-USD) and Shiba Inu (SHIB-USD). Most investors know there isn’t any substance to those projects, despite their proven ability to make traders money.
That’s also true of Tamadoge, which marries NFT trading and virtual pets. Remember Tamagotchi? Investors develop virtual pets and battle other owners for supremacy in this NFT-based universe. In theory, that will lead to a growing economy over time, and rising demand for the NFT characters.
Tamadoge is a recent blockchain project introduced in late-September 2022. The token began trading at $0.02, and by Oct. 4 had risen to $0.18. It flattened out in price immediately after that, trading between $0.02 and $0.04 since. That may not seem like much, but it has spiked more than 50% daily during that period.
Superior Industries International (SUP)
Superior Industries International (NYSE:SUP) is a difficult-to-understand stock in many respects. The company makes aluminum wheels for cars and light-duty vehicles. It doesn’t operate in a particularly volatile industry. It’s a pretty bland business, and demand seems reasonably steady at the company based on sales over the past few years.
Superior Industries International recorded $1.38 billion in sales in 2021 and $1.64 billion in 2022 and is projected to make $1.74 billion in sales this year. It didn’t incur losses in either of those years.
However, the company is projected to produce losses in 2023. That explains some of the negativity around the stock.
More volatility can be seen as investors zoom out further. Over the past decade, the stock traded within a very wide range. In the early 2010s, this stock traded around the $20 level, slipping to the $5 level of late. This led to Superior Industries halting its dividend entirely. That would crush any company’s stock, especially a manufacturing company’s, but I think this could be an intriguing bet for long-term investors thinking about the rise of EVs and the auto sector from here.
Solana (SOL-USD) went parabolic in the summer of 2021, seeing relatively steady price action higher. This crypto has exhibited extraordinary volatility, surging from $20 to $250 over three months. A year later, in November of 2022, Solana would be trading around $15 per token.
Solana grew as fast as it did because it was tipped as a potential Ethereum (ETH-USD) killer. Slow transaction speeds plagued Ethereum. So, when Solana came along with good transaction speeds 2-3,000 times faster than Ethereum, pundits perked up.
News spread, and the idea that Eterheum was too slow gained traction. The notion that Ethereum’s dominant position was in jeopardy grew, and Solana made a lot of people a lot of money quickly.
The hype has cooled, even as Ethereum’s transaction speeds remain as slow as before. That said, Solana is cheaper than it was entering the summer of 2021. It certainly remains a volatile option, and there’s no telling what will happen.
Eastman Kodak (KODK)
Eastman Kodak (NYSE:KODK) was an iconic American company that became synonymous with photography for many, and was once a valuable stock. You might remember the small canisters that stored the plastic film rolls. They mark a different era in photography that has since all but died. With it went Eastman Kodak’s place in American business.
The company was removed from the S&P 500 in 2004 and filed for bankruptcy in 2012. It became a chemicals firm primarily. That culminated in an odd turn of events during the early stages of the pandemic. The Trump administration awarded Kodak a $765 million loan to produce chemicals integral to expedite the development of a Covid-19 vaccine.
That resulted in KODK shares skyrocketing overnight from $2 to $50. The loan offer was rescinded following the controversy, and the bottom fell out on KODK stock.
What’s left now is an extremely volatile stock, that surges and plunges on rumors of operational pivots and various potential catalysts.
Fight Out (FGHT-USD)
Fight Out (FGHT-USD) is a newly-minted token that has experienced high volatility since its issuance on Apr. 5. The project bills itself as a platform that marries workouts, NFT avatars, and a gaming ecosystem, among other features.
The project has not been well received, and FGHT tokens have declined from $0.02 to $0.009 in just a few weeks. That 60% decline in value is a very inauspicious start that likely serves only to scare away potential investors.
One notable aspect of the project is that users create an NFT avatar that is unique to them and non-transferable. Fight Out refers to this as being ‘soulbound.’ It isn’t clear whether the avatar is an accurate-to-life representation of users, but it seems to be a central point of attraction.
Users compete with other members and socialize through the app, but the platform appears to remain early in its development. Of course, things could change quickly if crypto investors suddenly see value in the project.
APA Corp. (APA)
It should come as little surprise that APA Corp. (NASDAQ:APA) stock is highly volatile. After all, the company competes in the upstream oil exploration and production sector. It is a hit-or-miss industry in which fortunes come quickly, and developmental costs can just as easily lead to massive losses. Thus, APA’s 3.53 beta isn’t entirely unexpected.
Indeed, 2022 was an excellent year for the company, with $2.5 billion in free cash flows, $1.6 billion of which was returned to shareholders. Meanwhile, management repurchased 36.2 million shares of APA stock and doubled its dividend.
This year could be another strong year for the company. The company remains committed to returning 60% of free cash to shareholders. It’s a question of how much oil it can produce and prices.
Thus far, 2023 has provided mixed signals in that regard. OPEC is limiting supply which benefits APA about prices that will move higher. But oil market dynamics are multifactorial, and many inputs drive oil prices. That says nothing of APA’s ability to produce oil and locate new sources. So, volatility will remain high.
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On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.