The most volatile stocks for you to follow after the February stock market recap

 

February proved to be a month of significant volatility in global stock markets, largely attributed to concerns about the potential impact of the coronavirus outbreak on the world economy in the coming years. Apple, a major player in the tech industry, recently revealed that it would not meet its quarterly revenue projections due to the adverse effects of the coronavirus on its Chinese operations. This announcement has raised fears that other companies may follow suit as they prepare for the repercussions of the outbreak on their financial performance. Adding to the unease, a recent report on US retail sales unexpectedly indicated a 0.2 percent decline, hinting at possible slower economic growth on the horizon. Market participants are eagerly awaiting the US GDP report, scheduled for release on February 27, 2020. Despite late-January setbacks that sent the S&P 500 index back to its December 2019 levels, the stock market has been gradually recovering its upward momentum. Tech stocks, in particular, have been leading this resurgence. The Nasdaq has posted an impressive month-to-date return of 6.2 percent, followed by the S&P 500 with a 4.5 percent return, and the MSCI World Index with a 4.1 percent return. Market volatility, as gauged by the CBOE Volatility Index (VIX), has been on the rise, potentially due to concerns related to the coronavirus. Since February 14, the VIX has surged by 9.5 percent. Now, let’s delve into which stocks have been the most volatile in February 2020.

Most Volatile Stocks: Biggest Winners

Three stocks stand out as the top performers in February, each delivering returns exceeding 20 percent year-to-date:

1. L Brands Inc – 28.15%
2. Paycom Software Inc. – 21.64%
3. Lennar Corp – 21.49%

Moreover, five other stocks have yielded returns above 15 percent:

1. PulteGroup Inc. – 18.58%
2. TransDigm Group Inc. – 16.82%
3. General Electric Co. – 15.95%
4. Arista Networks Inc. – 15.56%
5. D.R. Horton Inc. – 15.13%

Most Volatile Shares: Biggest Losers

On the flip side, four stocks have experienced significant declines in their prices throughout February:

1. Technicolor – down 38.1%
2. Fluor Corporation – down 18.5%
3. Chesapeake Energy Corporation – down 13.7%
4. ConAgra Foods – down 8.0%

Top 4 Volatile Stocks of February

The volatility brought about by the coronavirus outbreak has led to both dramatic upswings and downswings in stock prices, depending on each company’s exposure to the virus’s impact. Meanwhile, the initial public offering (IPO) market has witnessed a surge in new listings, thanks to favorable market conditions for companies seeking to go public. These newly listed companies often become some of the most volatile stocks, especially when their business models are unproven. Here are the top four most volatile stocks in February:

1. Hexindai Inc. (HX): Hexindai’s shares have been on a downward trajectory since late December, primarily due to a significant revenue miss in September 2019. The stock’s price has struggled to recover, hovering around $0.40 – $0.45 in early February.
2. 1Life Healthcare Inc. (ONEM): ONEM’s shares surged following its late January IPO, reaching an all-time high of $26.69. However, the stock’s price subsequently declined to nearly $23 per share, resulting in a 4 percent month-to-date return. Market skepticism about the feasibility of ONEM’s business model continues to influence its volatility.
3. Westlake Chemical (WLK): WLK shares began declining in mid-January, falling from a 2020 peak of $71.50 to $59.67. The company attributes this drop to slower global economic growth and international trade conflicts. WLK is currently trading below its 5-day and 10-day simple moving averages.
4. Reynolds Consumer Products (REYN): Following its successful IPO, REYN shares soared to nearly $31, delivering on investors’ expectations. The company, which manufactures aluminum foil and plastic wrapping, is set to announce its Q4 results in March 2020, generating excitement among investors due to its profitability in 2019.

As you consider trading these volatile stocks, remember that contracts for difference (CFDs) allow you to profit from price fluctuations, regardless of whether your outlook on a stock’s performance is positive or negative. This flexibility enables you to seize trading opportunities in both rising and falling markets.

Get back to Seikum News 🤓