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Highlights
- Volatile stocks are deemed to be highly risky in the financial world, but if invested wisely it can help investor to make a lot of profit.
- Some investors are more risk averse and prefer to invest in more stable investments, but others take more risk to generate a higher return.
The pandemic has created volatility and uncertainty in the stock markets across the world since 2020, which is still on in 2022. Volatile stocks are deemed to be highly risky in the financial world, but if you invest wisely, they can help investors to make a lot of profit.
Some investors are more risk averse and prefer to invest in more stable investments, but others take more risk to generate higher return. But while investing in volatile stocks one should take caution and use risk-management controls to avoid losses.
Volatility is a statistical value known as Beta that measured the range of return for a given security in relation to market index. It measures this dispersion through standard deviation or variance between returns. A security that fluctuates more than the market index has a beta of more than 1.0, and that fluctuate less than the market index has a beta of less than 1.0.
Also Read: Hotel Chocolat, Mondi, M&S: Stocks you may pick ahead of Valentine’s Day
Let us now look at the five most volatile FTSE stocks that you may closely watch before investing.
- Harbour Energy Plc (LON: HBR)
FTSE 250 constituent Harbour Energy Plc is the UK’s largest independent oil and gas company with operations in the UK, Brazil, Indonesia, Mexico, Norway, Vietnam, and Falkland Island.
Harbour Energy Plc’s stock has a beta of 4.16, it has given a return of -13.09% to its shareholders in the last one year and its year-to-date return stands at 3.10% as of 10 February 2022. Its shares were trading at GBX 364.80, down by 0.60%, at 8:00 AM BST, with a market capitalization of £3,396.70 million on 10 February 2022.
- John Menzies Plc (LON: MNZS)
John Menzies Plc is a leading global provider of landside and airside services. The company has developed to become a critical partner in the global aviation sector that offer logistics and support services.
John Menzies Plc’s stock has a beta of 3.82, it has given a return of 108.15% to its shareholders in the last one year and its year-to-date return stands at 48.04% as of 10 February 2022. Its shares were trading at GBX 460, down by 3.76%, at 8:00 AM BST, with a market capitalization of £439.29 million on 10 February 2022.
- Cineworld Group Plc (LON: CINE)
FTSE 250 constituent Cineworld Group Plc is the world’s second largest cinema chain that operates through 767 sites with 9,311 screens across 10 countries. Cineworld Group Plc’s stock has a beta of 3.57, it has given a return of -46.91% to its shareholders in the last one year and its year-to-date return stands at 26.44% as of 10 February 2022. Its shares were trading at GBX 40.50, up by 3.13%, at 8:00 AM BST, with a market capitalization of £539.18 million on 10 February 2022.
Also Read: BP, Shell (SHEL), Diversified Energy (DEC): 3 FTSE oil stocks to buy
- Costain Group Plc (LON: COST)
Costain Group Plc is a construction and engineering company that offers consultancy and advisory, future-shaping strategic consultancy, asset optimization, digital technology solutions and complex programmed delivery solutions to its clients.
Costain Group Plc’s stock has a beta of 3.31, it has given a return of -13.48% to its shareholders in the last one year and its year-to-date return stands at -4.89% as of 10 February 2022. Its shares were trading at GBX 47, down by 5.43%, at 8:00 AM BST, with a market capitalization of £136.65 million on 10 February 2022.
- Tullow Oil Plc (LON: TLW)
Tullow Oil Plc is a multinational oil and gas exploration and production company with primary focus on Europe, Africa, and South America, as well as has interest in more than 50 exploration and production licences located across 11 countries.
Tullow Oil Plc’s stock has a beta of 3.28, it has given a return of 64.28% to its shareholders in the last one year and its year-to-date return stands at 9.71% as of 10 February 2022. Its shares were trading at GBX 51.16, down by 1.24%, at 8:00 AM BST, with a market capitalization of £742.18 million on 10 February 2022.
