With mid-cap stocks, volatility emerges as both a challenge and an opportunity. For investors seeking higher returns in exchange for higher risk, this volatility can be particularly enticing.
By carefully screening, investors can uncover stocks with significant growth potential. Our methodology hones in on mid-cap stocks with a high level of volatility.
Methodology: How Did We Choose These Stocks?
For this screener, the filters have been chosen to identify mid-cap stocks with a high level of volatility.
Market Cap: By focusing on companies with a market capitalization between $250 million and $2 billion, we target businesses that are sizable enough to offer liquidity and stability, yet small enough to experience significant growth potential and market fluctuations.
Beta: A Beta greater than 1 indicates that these stocks are more volatile than the overall market, which can be attractive for investors seeking higher returns in exchange for higher risk. This combination of mid-cap stocks with high volatility aims to present opportunities for substantial gains, ideal for those with a higher risk tolerance.
Volatile Stocks
| Company Name | Stock Symbol | Industry | Market Cap | Beta |
| Teladoc Inc | TDOC | Health Care Technology | 1.592 B | 1.68 |
| Shutterstock | SSTK | Interactive Media & Services | 1.411 B | 2.21 |
| Bumble Inc | BMBL | Interactive Media & Services | 1.185 B | 1.23 |
| Sally Beauty Holdings Inc | SBH | Consumer Discretionary | 1.133 B | 1.09 |
| Olaplex Holdings Inc | OLPX | Personal Care Products | 1.092 B | 1.50 |
| Stitch Fix | SFIX | Consumer Discretionary | 582.3 M | 2.04 |
| Xponential Fitness Inc | XPOF | Consumer Discretionary | 521.5 M | 1.65 |
1. Teladoc Inc (TDOC)
- Market Cap: $1.592 B
- Beta: 1.68
✔️ Liquid assets exceed short term obligations
✔️ Valuation implies a strong free cash flow yield
Teladoc Inc (TDOC) is a leading telemedicine and virtual healthcare company, providing a wide range of remote medical services, including consultations with healthcare professionals via video, phone, and app.
2. Shutterstock (SSTK)
- Market Cap: $1.411 B
- Beta: 2.21
✔️ Holds more cash than debt on its balance sheet
✔️ Has raised its dividend for 4 consecutive years
Shutterstock (SSTK) is a global provider of high-quality licensed photographs, videos, and music, catering to creative professionals and businesses.
3. Bumble Inc(BMBL)
- Market Cap: $1.185 B
- Beta: 1.23
✔️ Management has been aggressively buying back shares
✔️ Net income is expected to grow this year
Bumble Inc (BMBL) is a social networking platform known for its dating app where women make the first move, promoting healthy and respectful interactions.
4. Sally Beauty Holdings Inc (SBH)
- Market Cap: $1.133 B
- Beta: 1.09
✔️ Management has been aggressively buying back shares
✔️ Trading at a low earnings multiple
5. Olaplex Holdings Inc (OLPX)
- Market Cap: $1.092 B
- Beta: 1.50
✔️ Impressive gross profit margins
✔️ Valuation implies a strong free cash flow yield
Olaplex Holdings Inc (OLPX) is a beauty and haircare company specializing in innovative, science-backed hair repair products.
6. Stitch Fix (SFIX)
- Market Cap: $582.3 M
- Beta: 2.04
✔️ Holds more cash than debt on its balance sheet
✔️ 3 analysts have revised their earnings upwards for the upcoming period
Stitch Fix (SFIX) is an online personal styling service that uses data science and human expertise to deliver personalized clothing selections to customers.
7. Xponential Fitness Inc (XPOF)
- Market Cap: $521.5 M
- Beta: 1.65
✔️ Impressive gross profit margins
✔️ Management has been aggressively buying back shares
Xponential Fitness Inc (XPOF) is a franchisor of boutique fitness brands, offering a variety of specialized fitness programs and classes through its extensive network of studios.
How to Find Volatile Stocks
You can find volatile stocks easily using Investing Pro. Here are the steps:
- Click on the Screener tool.
- Select ‘Market Cap’ as a filter and set the values between $250 million and $2 billion
- For US-centric stocks, select ‘United States’ under the ‘Trading Region’ tab drop-down, and make sure to check (select) the ‘Primary Trading Item’ option.
- Add a filter for ‘Beta’ greater than 1
Volatile Stocks FAQs (Frequently Asked Questions)
What are volatile stocks?
Volatile stocks are those that experience significant price fluctuations over a short period. These fluctuations can be caused by various factors such as news, earnings reports, market sentiment, or changes in industry trends.
Why are some stocks more volatile than others?
Volatility can stem from a variety of factors including market conditions, company performance, investor sentiment, and external events. Stocks of newer or smaller companies, for example, tend to be more volatile as they are more susceptible to market shifts and news.
What are the risks of investing in volatile stocks?
Investing in volatile stocks can be risky due to the potential for large price swings. While volatility can lead to quick gains, it can also result in significant losses if the market moves against you. Additionally, volatile stocks may be more prone to sudden downturns or crashes.
How can I manage the risks associated with volatile stocks?
Diversification is key to managing risk in any investment portfolio. By spreading your investments across different asset classes and sectors, you can reduce the impact of volatility on your overall portfolio. It’s also important to conduct thorough research and stay informed about the companies you’re investing in.
Are there any strategies for profiting from volatile stocks?
Some investors specialize in trading volatile stocks, employing strategies such as momentum trading, swing trading, or day trading. These strategies involve buying and selling stocks quickly to capitalize on short-term price movements. However, they require a high level of skill and discipline.
