15 Most Volatile Stocks to Buy Now

Published on November 21, 2022 at 1:40 pm by Usman Kabir in Hedge Funds, News

In this article, we discuss the 15 most volatile stocks to buy now. If you want to read about some more volatile stocks, go directly to 5 Most Volatile Stocks to Buy Now.

Even though the United States stock market is inextricably linked to the US economy, there are increased fears that the factors contributing to the decline of both in the past few months are vastly different. As far as the economy is concerned, a post-pandemic inflation wave, a result of pent-up demand and clogged supply chains, is the chief villain. The central bank has been hiking up interest rates to increase borrowing costs to bring inflation under control, and as demand normalizes, supply chains are recovering as well.

As companies like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB) deal with increased volatility, market experts believe the US economy can avoid a full-blown recession. However, they are not so hopeful about the US stock market, which is undergoing a correction that has been decades in the making. Per Justin Simon, the founder of the investment firm Jasper Capital, the stock market would have to decline by 30% to 40% to return to pre-COVID levels.

Our Methodology

The companies that have volatile 52-week price ranges were selected for the list. The analyst ratings of these firms and the latest updates related to them are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm. These stocks have been listed as potential Buy options despite their volatility because of factors like fundamentals, future growth catalysts, positive ratings from analysts, and positive hedge fund sentiment.

Photo by Jamie Street on Unsplash

Most Volatile Stocks to Buy Now

15. Forza X1, Inc. (NASDAQ:FRZA)

Number of Hedge Fund Holders: 1

52-Week Price Range ($): 1.53 – 15.00

Forza X1, Inc. (NASDAQ:FRZA) focuses on designing, developing, and manufacturing fully electric boats in the United States. It is one of the most volatile stocks to invest in. On August 18, Forza X1 unveiled that it has entered into a strategic partnership with OneWater Marine, a top marine retail dealership. In this partnership, both companies will create a distribution channel for Forza X1’s integrated sports boats.

At the end of the third quarter of 2022, 1 hedge fund in the database of Insider Monkey held stakes worth $40,000 in Forza X1, Inc. (NASDAQ:FRZA).

In contrast to established names like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), Forza X1, Inc. (NASDAQ:FRZA) is one of the growth stocks that has been volatile in the past few months.

14. Selina Hospitality PLC (NASDAQ:SLNA)

Number of Hedge Fund Holders: N/A

52-Week Price Range ($): 3.52 – 49.49

Selina Hospitality PLC (NASDAQ:SLNA) operates as a hospitality company to address the needs of travelers. On November 2, Selina Hospitality revealed that it has entered into a strategic partnership with a global retreat operator, Mantra, to curate wellness retreats through Selina’s ecosystem of 163 locations across 25 countries and six continents.

13. Gaucho Group Holdings, Inc. (NASDAQ:VINO)

Number of Hedge Fund Holders: 2

52-Week Price Range ($): 1.47 – 39.00

Gaucho Group Holdings, Inc. (NASDAQ:VINO) invests in, develops, and operates real estate projects in Argentina. It is one of the top volatile stocks to invest in. On November 2, Gaucho Group Holdings noted that its subsidiary, Algodon Wine Estates, received approval from Mendoza’s Departamento General de Irrigacion to drill its water well to service the estate’s 4,138-acre wine, culinary sport, wellness and sports resort and luxury residential development in San Rafael, Mendoza, Argentina.

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Gaucho Group Holdings, Inc. (NASDAQ:VINO) with 315,338 shares worth more than $71,000.

12. Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN)

Number of Hedge Fund Holders: N/A

52-Week Price Range ($): 1.10 – 9.38

Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN) is a clinical-stage oncology-focused biotechnology company that develops platforms for biologic medicines of single or bispecific action. On October 31, Sonnet BioTherapeutics unveiled that it is collaborating with Johnsons & Johnsons, a developer of medical devices, pharmaceuticals and consumer packaged goods, to evaluate SON-1010, SON-1210 and SON-1410 in combination with certain cell therapy assets.

On September 22, Chardan analyst Keay Nakae maintained a Buy rating on Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN) stock and raised the price target to $22 from $2, noting that the company just reported that no dose-limiting toxicities have occurred to date in either study of its lead drug.

11. TFF Pharmaceuticals, Inc. (NASDAQ:TFFP)

Number of Hedge Fund Holders: 2

52-Week Price Range ($): 1.06 – 9.96

TFF Pharmaceuticals, Inc. (NASDAQ:TFFP) is a clinical-stage biopharmaceutical company that focuses on developing and commercializing drug products based on its patented Thin Film Freezing (TFF) technology platform in the United States and Australia. It is one of the major volatile stocks to invest in. On November 1, TFF Pharmaceuticals announced program updates for Voriconazole Inhaled Powder and Tacrolimus Inhaled Powder clinical programs. The company expects to deliver preliminary patient data from the phase 2 study of TFF VORI in the first quarter of 2023 and TFF TAC in the third quarter of 2023.

At the end of the third quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $1.3 million in TFF Pharmaceuticals, Inc. (NASDAQ:TFFP), compared to 3 the preceding quarter worth $2.1 million.

10. Ligand Pharmaceuticals Incorporated (NASDAQ:LGND)

Number of Hedge Fund Holders: 15

52-Week Price Range ($): 45.27 – 104.87

Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) is a biopharmaceutical company that focuses on developing or acquiring technologies that help pharmaceutical companies to discover and develop medicines worldwide. On November 1, Ligand Pharmaceuticals revealed that it has completed the expected tax-free spin-off of its Omni Ab antibody discovery business which has become OmniAb Inc, a drug discovery company.

On October 25, investment advisory HC Wainwright maintained a Buy rating on Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) stock and lowered the price target to $135 from $310. Analyst Joseph Pantginis issued the ratings update.

Among the hedge funds being tracked by Insider Monkey, Los Angeles-based firm Oaktree Capital Management is a leading shareholder in Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) with 19.3 million shares worth more than $18 million.

In its Q3 2021 investor letter, Bumbershoot Holdings LP, an asset management firm, highlighted a few stocks and Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) was one of them. Here is what the fund said:

“While Viking Therapeutics (VKTX:NCM) was down for the year—we were able to take advantage of a spike in price during February to moderately reduce/hedge our exposure and transfer some of the position over to Ligand Pharmaceuticals Incorporated (NASDAQ:LGND)—Viking’s former parent company. Ligand still owns nearly 10% of Viking’s shares, to go along with its own compelling growth story. The combined Viking/Ligand position was a positive contributor to performance.”

9. American Superconductor Corporation (NASDAQ:AMSC)

Number of Hedge Fund Holders: 13

52-Week Price Range ($): 3.27 – 14.49

American Superconductor Corporation (NASDAQ:AMSC) provides megawatt-scale power resiliency solutions worldwide. It is one of the most volatile stocks to invest in. On October 18, American Superconductor Corp. announced new energy power systems orders worth $30 million, which include the orders of harmonic filters, enclosed capacitor banks, rectifiers, voltage controllers and transformers. One-third of revenue from these orders is expected to be recognized by the fiscal year 2022.

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Royce & Associates is a leading shareholder in American Superconductor Corporation (NASDAQ:AMSC) with 1.5 million shares worth more than $6.6 million.

8. Kaman Corporation (NYSE:KAMN)

Number of Hedge Fund Holders: 13

52-Week Price Range ($): 18.88 – 46.50

Kaman Corporation (NYSE:KAMN) operates in the aerospace, defense, medical, and industrial markets. On October 18, Kaman Corporation revealed that its unit, Kaman Air Vehicles, received a signed purchase agreement from North American Helicopter for a medium to heavy lift helicopter. The delivery is expected in the fourth quarter of the year 2022.

At the end of the third quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $121 million in Kaman Corporation (NYSE:KAMN), the same as in the previous quarter worth $127 million.

7. Starry Group Holdings, Inc. (NYSE:STRY)

Number of Hedge Fund Holders: 17

52-Week Price Range ($): 0.16 – 10.90

Starry Group Holdings, Inc. (NYSE:STRY) operates as a next-generation licensed fixed wireless technology developer and internet service provider. It is one of the top volatile stocks to invest in. On October 20, Starry Group Holdings disclosed that it has decided to cut off about 50% of its workforce to bring down cash burn due to an extremely difficult economic climate and capital environment. The company said that it is withdrawing its full-year 2022 guidance alongside a hiring freeze and exit from FCC’s RDOF program.

At the end of the third quarter of 2022, 17 hedge funds in the database of Insider Monkey held stakes worth $41 million in Starry Group Holdings, Inc. (NYSE:STRY), the same as in the preceding quarter worth $106 million.

In its Q2 2022 investor letter, Meridian Funds, an asset management firm, highlighted a few stocks and Starry Group Holdings, Inc. (NYSE:STRY) was one of them. Here is what the fund said:

“A rare entrant to the public markets during the challenging first quarter of the year, Starry Group Holdings, Inc. (NYSE:STRY) lagged due in part, we believe, to technical issues. The firm offers low-cost high-speed broadband via fixed wireless technology in six U.S. cities. Relative to traditional cable and wireless providers, the company holds a material cost advantage as well as a quality-of-service advantage, and thus appears capable of capturing a considerable share of a very large addressable market. While new to the Fund, our research team has years of familiarity with the firm and its leadership as a private company and since we initiated our position, the company has issued two operational updates highlighting better-than-expected performance.”

6. Tupperware Brands Corporation (NYSE:TUP)

Number of Hedge Fund Holders: 11

52-Week Price Range ($): 3.87 – 21.10

Tupperware Brands Corporation (NYSE:TUP) operates as a consumer products company worldwide. On November 1, Tupperware Brands Corporation posted earnings for the third quarter of 2022, reporting earnings per share of $0.14, missing market estimates by $0.28. The revenue over the period was $302.8 million, down 19.7% compared to the revenue over the same period last year and missing market estimates by $13.3 million.

On November 3, DA Davidson analyst Linda Bolton Weiser maintained a Neutral rating on Tupperware Brands Corporation (NYSE:TUP) stock and lowered the price target to $4.50 from $10, highlighting that the company missed operating profit and sales targets in Q3.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Citadel Investment Group is a leading shareholder in Tupperware Brands Corporation (NYSE:TUP) with 624,716 shares worth more than $4 million.

Unlike tech giants like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), Tupperware Brands Corporation (NYSE:TUP) is one of the stocks feeling the heat of macro economic slowdown.

In its Q2 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Tupperware Brands Corporation (NYSE:TUP) was one of them. Here is what the fund said:

“We also began to build a position in Tupperware Brands Corporation (NYSE:TUP) at the end of the quarter. Tupperware sells home goods through a direct marketing channel. The stock is well off the 2013 high of $97. New CEO Miguel Fernandez joined the firm in April 2020. Previously, he worked on the turnaround of Avon before it was sold to Natura & Co. Over the past year, Miguel has been focused on selling off non-core assets, paying down debt, and rolling out a new growth strategy. We believe there’s a significant unrecognized brand value at Tupperware that the company will monetize through expansion into new markets. Overall, the stock is currently trading for less than 5x what it is expected to earn this year.”

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