The 10 Most Volatile Stocks to Add To Your Watchlist for February 2025

Key takeaways

High risk, high reward – Volatile stocks can offer massive upside potential, but their price swings can be extreme, making them better suited for risk-tolerant investors.

Sector-driven turbulence – Many of these stocks are highly sensitive to external factors like commodity prices, consumer trends, and regulatory changes, meaning their volatility often follows industry-wide trends rather than company-specific issues.

Timing is everything – In highly volatile sectors, entry and exit points can make or break an investment, so understanding macroeconomic conditions, earnings trends, and sentiment shifts is crucial.

3 stocks I like better than the ones on this list.

The stock market is often thought of as a rollercoaster. However, depending on what you are investing in, that rollercoaster could be boring or have you retching in the trash can after you get off.That is because stocks, depending on their market capitalization, earnings, news releases, or reputation, can have high volatility, which can cause alarming price movements.

And even in the midst of the pandemic, we saw reliable, income-paying restaurant stocks collapse in price due to lockdowns materially impacting their business. When we seek out the most volatile stocks, we often do so intending to trade these stocks.

That’s because nobody wants to trade a stock that moves a percent or two per day. If you’re a trader, you want to be trading stocks with large swings in share price, so we can take advantage of those price swings on either the long or short end.

How can we measure stock market volatility?

Beta is a suitable way to measure the volatility of Canadian stocks. When we speak on a stock’s beta, we compare how much that stock will move relative to its benchmark index. For example, a company within the S&P 500 with a beta of “1.5” suggests that for every 1% move in the S&P 500, we can expect the stock to move 1.5%.

If a company has a beta of 0.5, we can expect for every 1% move in the index, it will only move 0.5%.The lower the beta, the lower the overall volatility of the stock itself. Higher-volatility stocks are often correlated with a high beta. You will often see low-beta stocks in the utility and industrial sectors. In contrast, high beta stocks often reside in healthcare stocks, or the technology, mining industries.

Typically, the S&P 500 is used as a benchmark for most U.S. stocks’ beta calculations. However, sites can use a different benchmark if they wish. For Canada, the Toronto Stock Exchange is often used.

Is there an index we can use for volatility?

The VIX index is excellent for judging the relative volatility of the markets. The VIX’s goal is to produce a measure of the constant, 30-day expected volatility of the U.S. stock markets. Many people swing trading stocks or day trading stocks will take advantage of and attempt to profit off short-term fluctuations in the price of the VIX.

Considerations when investing in the most volatile stocks

Traders often seek out high-volatility stocks to try and turn out significant gains. However, what many get tunnel vision with is the gains aspect of volatile stocks. They tend to forget about the losses, which can be severe and dramatic, and show up quick in stocks with high price volatility.

If your portfolio is made up exclusively of high-volatility stocks, you are likely putting yourself at extensive risk. Figure out if trading is suitable for you. Suppose you want to give it a shot. In that case, I’d suggest setting aside a tiny portion of your portfolio, one you’d be comfortable losing, to start trading.

It’s important to remember that you have less than a 10% chance of breaking even or making money when it comes to day trading. If you buy and sell these high-volatility stocks, know there is a good chance it will be an unprofitable endeavour. With that said, let’s look at some of the most volatile stocks to be trading right now.

Some parameters of this list of high-volatility stocks before we begin

We’ve screened the S&P 500 and around 400 stocks in Canada and have sorted them by their most recent beta. So, this list will not contain highly volatile penny stocks or stocks not listed on major exchanges. Make no mistake about it, however, even some of the stocks listed below on the major exchanges have significant amounts of volatility. This list was last fully updated on December 5th, 2022.

Gold and silver mining company with high-risk assets

McEwen Mining (TSE:MUX)

McEwen Mining is a precious metals miner with operations in North and South America. The company is known for its aggressive expansion efforts, speculative exploration projects, and exposure to fluctuating gold and silver prices, all of which contribute to its extreme stock volatility.

P/E: 3.8

5 Yr Revenue Growth: 5.3%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -100%

Yield: -%

  • Small-cap miner with significant leverage to gold and silver prices
  • High-growth potential if exploration projects succeed
  • Founder-led company with a strong vision for expansion
  • Volatile due to fluctuating metal prices and production results
  • Exposure to multiple mining-friendly jurisdictions
  • Often trades based on sentiment and speculation rather than fundamentals
  • Gold and Silver Prices – Metal prices dictate MUX’s profitability and stock movement.
  • Operational Efficiency – Any production hiccups or cost overruns can create major swings.
  • Exploration Success – New discoveries or expansion projects can drive the stock higher.
  • Geopolitical Risk – Mining regulations and local issues in Argentina and Mexico are potential concerns.
  • High Cash Burn – The company frequently raises capital, leading to dilution.
  • Commodity Dependency – Gold and silver price downturns hit the stock hard.
  • Regulatory Uncertainty – Mining permits and environmental policies can be unpredictable.
  • Execution Risk – Delays or underwhelming production results can cause significant sell-offs.

Oil and gas producer with U.S. and Canadian assets

Ovintiv (TSE:OVV)

Ovintiv is a North American oil and gas producer with operations in the U.S. and Canada. Formerly known as Encana, it rebranded to emphasize its shift to U.S.-based production. The company focuses on shale drilling and is highly exposed to swings in oil and gas prices.

P/E: 5.9

5 Yr Revenue Growth: 12.9%

5 Yr Earnings Growth: 7.2%

5 Yr Dividend Growth: 30.8%

Yield: 2.7%

  • Strong exposure to high-quality shale assets
  • Cost-cutting efforts have improved profitability
  • Shareholder returns through dividends and buybacks
  • Cyclical nature creates big swings based on crude prices
  • Strategic asset sales have improved financial stability
  • Well-positioned for higher energy demand post-pandemic
  • Oil Price Volatility – Ovintiv’s stock moves in tandem with crude prices.
  • Shale Production Costs – Efficiency improvements can help maintain margins.
  • Debt Reduction Efforts – The company has focused on strengthening its balance sheet.
  • ESG Regulations – Stricter environmental policies could impact operations.
  • Commodity Dependence – Oil price drops can quickly erase gains.
  • Regulatory Challenges – Government policies on fracking could create headwinds.
  • High Debt Levels – Rising interest rates could make refinancing more expensive.
  • Operational Execution – Production setbacks can lead to earnings disappointments.

Canadian natural gas producer

Paramount Resources (TSE:POU)

Paramount Resources is a mid-sized energy company focused on natural gas and liquids-rich production in Western Canada. It is highly sensitive to commodity prices and drilling success, making it one of the most volatile energy plays on the TSX.

P/E: 12.0

5 Yr Revenue Growth: 16.3%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: 5.9%

  • Pure-play exposure to Canadian natural gas
  • Strong reserves with room for production growth
  • Strategic acquisitions and divestitures drive stock swings
  • High volatility due to exposure to seasonal demand fluctuations
  • Lean operations with potential for efficiency gains
  • Benefiting from increased LNG export opportunities
  • Natural Gas Prices – Paramount is extremely leveraged to gas price movements.
  • Infrastructure Constraints – Pipeline capacity affects how much it can sell.
  • LNG Export Growth – Global demand for Canadian gas could be a long-term tailwind.
  • Weather-Driven Demand – Harsh winters can boost gas demand, while mild seasons hurt pricing.
  • Pipeline Bottlenecks – Limited takeaway capacity can lead to price discounts.
  • Regulatory Hurdles – Government intervention in energy production is a constant concern.
  • High Leverage – The company carries significant debt that can pressure margins.
  • Commodity Cycles – Gas prices can be unpredictable, leading to large stock swings.

International oil & gas exploration company

APA Corp (APA)

APA Corp is a global oil and gas exploration company with operations in the U.S., Egypt, and the North Sea. Known for its aggressive drilling strategy and high exposure to commodity prices, the stock is highly reactive to oil market swings. APA has also made significant bets on offshore projects, which add another layer of risk and volatility.

P/E: 3.3

5 Yr Revenue Growth: 1.4%

5 Yr Earnings Growth: 142.6%

5 Yr Dividend Growth: -%

Yield: 4.3%

  • Strong global asset base with exposure to multiple oil basins
  • High sensitivity to crude and natural gas prices
  • Expanding presence in offshore exploration, adding upside potential
  • Returns cash to shareholders via buybacks and dividends
  • Leverage to potential energy price spikes due to geopolitical factors
  • Efficient cost management has improved profitability
  • Oil Price Fluctuations – APA’s stock moves in tandem with crude prices.
  • Offshore Exploration Results – Success in new drilling projects can be a major catalyst.
  • Geopolitical Risks in Egypt – Operations in politically sensitive areas can create uncertainty.
  • Shareholder Return Policies – Investors are watching for dividend hikes and buybacks.
  • Commodity Volatility – Oil downturns can significantly impact earnings.
  • Exploration Risks – Drilling in deepwater and offshore locations adds uncertainty.
  • Debt Levels – APA has taken on debt to fund expansion, which could be problematic in downturns.
  • Regulatory Uncertainty – Environmental policies could impact future drilling projects.

Canadian oil producer focused on dividends

Cardinal Energy (TSE: C.J.)

Cardinal Energy is a small-cap Canadian oil producer known for its high dividend yield and conservative management. However, its reliance on oil prices and a concentrated asset base make it a highly volatile stock.

P/E: 10.2

5 Yr Revenue Growth: 9.1%

5 Yr Earnings Growth: 4.6%

5 Yr Dividend Growth: 12.8%

Yield: 11.0%

  • Strong dividend yield attracts income investors
  • Low-cost producer with solid cash flow generation
  • High sensitivity to oil prices makes it a strong upside play in bull markets
  • Improving balance sheet through debt reductions
  • Focus on sustainability and environmental responsibility could attract ESG investors
  • Potential acquisition target given its valuable reserves
  • Dividend Sustainability – Oil price fluctuations impact its ability to maintain payouts.
  • Production Growth Strategy – Expansion plans will determine future profitability.
  • Oil Price Trends – Cardinal is extremely sensitive to crude price movements.
  • M&A Potential – Could be a target for larger energy firms looking to expand reserves.
  • Commodity Dependence – Heavily reliant on oil prices staying elevated.
  • Small Cap Volatility – Shares can see wild swings due to low liquidity.
  • Regulatory Challenges – Stricter environmental policies could increase costs.
  • Limited Diversification – A focused asset base increases operational risks.

Canada’s largest movie theater chain

Cineplex (TSE:CGX)

Cineplex is the dominant player in the Canadian movie theater industry. While it has diversified into gaming and entertainment, its core business remains highly dependent on box office performance, making it a volatile stock tied to consumer trends.

P/E:

5 Yr Revenue Growth: -2.9%

5 Yr Earnings Growth: 11.7%

5 Yr Dividend Growth: -100.0%

Yield: -%

  • Market leader in the Canadian entertainment industry
  • Recovery play as theater attendance rebounds post-pandemic
  • Diversification into gaming and amusement centers adds revenue streams
  • Potential M&A target as industry consolidation continues
  • High short interest makes it prone to short squeezes
  • Leverage to blockbuster film releases (strong years drive major revenue gains)
  • Box Office Performance – Cineplex’s financials rely on Hollywood’s ability to produce hits.
  • Consumer Spending Trends – Discretionary income impacts theater attendance.
  • Streaming Competition – Growth of direct-to-streaming content remains a major challenge.
  • Debt Levels – Cineplex took on significant debt to survive the pandemic.
  • Streaming Disruption – Direct-to-consumer releases could reduce long-term theater demand.
  • High Debt Load – Significant leverage increases financial risk in downturns.
  • Slow Recovery in Attendance – Consumer habits post-pandemic remain uncertain.
  • M&A Uncertainty – Failed acquisition attempts have created instability.

Private jet manufacturer

Bombardier (TSE:BBD.B)

Bombardier has shifted its focus exclusively to business jets after exiting the commercial aviation and rail sectors. While this has improved profitability, the company remains highly volatile due to its reliance on luxury jet demand and debt levels.

P/E: 15.2

5 Yr Revenue Growth: -12.4%

5 Yr Earnings Growth: 14.4%

5 Yr Dividend Growth: -%

Yield: -%

  • Pure-play exposure to growing private jet market
  • Focused on premium business jets with strong margins
  • Major restructuring has improved financial stability
  • Demand for private travel remains strong post-pandemic
  • Positive free cash flow generation after years of losses
  • Could be an acquisition target for a larger aerospace firm
  • Corporate Jet Demand – Economic cycles heavily impact business jet sales.
  • Debt Reduction Efforts – Bombardier has aggressively cut debt, but more progress is needed.
  • Supply Chain Challenges – Component shortages can delay aircraft deliveries.
  • Competition in Business Aviation – Rivals like Gulfstream and Dassault pose strong competition.
  • Cyclical Demand – Business jets are a luxury product, making sales unpredictable.
  • Debt Burden – The company remains highly leveraged despite recent improvements.
  • Execution Risk – Delays or cost overruns in jet production can impact margins.
  • Geopolitical Risks – Sanctions or trade restrictions could impact international sales.

Canadian cannabis producer

Aurora Cannabis (TSE:ACB)

Aurora Cannabis is one of Canada’s largest cannabis companies, but it has struggled with profitability due to oversupply and regulatory challenges. It remains a high-risk, high-volatility stock.

P/E:

5 Yr Revenue Growth: 1.9%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: -%

  • One of the largest cannabis producers in Canada
  • Potential for long-term growth if global legalization expands
  • Cost-cutting measures have reduced cash burn
  • Exposure to medical cannabis, a more stable market than recreational
  • Recent partnerships and international expansion provide some optimism
  • Strong brand recognition in the industry
  • Legalization Trends – U.S. federal legalization would be a game-changer.
  • Oversupply Issues – The industry still struggles with excess inventory.
  • Profitability Efforts – Cost-cutting remains a major focus for the company.
  • International Expansion – European and South American markets present opportunities.
  • Lack of Profitability – The company has struggled to turn a profit.
  • Regulatory Uncertainty – Cannabis laws remain inconsistent worldwide.
  • Market Oversaturation – Too much supply has driven down prices.
  • Dilution Risk – Frequent capital raises hurt shareholder value.

Oil & gas producer with U.S. focus

Enerplus Corp (TSE:ERF)

Enerplus is a mid-cap energy company focused on U.S. shale production. Its stock is highly volatile due to exposure to crude oil and natural gas price swings.

P/E:

5 Yr Revenue Growth: -%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: -%

  • Strong U.S. shale assets with growth potential
  • Improving balance sheet with debt reductions
  • Returns capital to shareholders via dividends and buybacks
  • Leverage to rising oil and gas prices
  • Operational efficiency improvements boosting margins
  • Potential for M&A as industry consolidation continues
  • Oil and Gas Prices – Drives revenue and profitability.
  • Debt Reduction – Strengthening financials is a key focus.
  • M&A Activity – Could be a target or acquirer in consolidation.
  • Operational Efficiency – Cost-cutting efforts impact margins.
  • Commodity Price Swings – Highly reactive to energy markets.
  • Regulatory Uncertainty – Environmental policies could impact growth.
  • High Capital Costs – Drilling and expansion require significant investment.
  • Geopolitical Risks – Energy markets are influenced by global tensions.

Major casino and hospitality operator

Caesars Entertainment (CZR)

Caesars Entertainment is one of the largest casino and resort operators in the U.S., with properties in Las Vegas and other major gambling hubs. The stock is highly volatile due to its exposure to discretionary consumer spending, debt levels, and the unpredictable nature of gaming revenue.

P/E:

5 Yr Revenue Growth: 41.2%

5 Yr Earnings Growth: 24.4%

5 Yr Dividend Growth: -%

Yield: -%

  • Strong brand with a dominant presence in the casino industry
  • Significant exposure to the Las Vegas Strip, a high-revenue market
  • Growth in online gaming and sports betting through Caesars Digital
  • Operating efficiency improvements following the Eldorado merger
  • High potential for earnings recovery as tourism rebounds
  • Asset sales and debt reduction efforts are improving financial health
  • Las Vegas and Tourism Recovery – Casino revenues are heavily tied to travel trends.
  • Sports Betting Growth – Caesars is expanding its digital betting platform.
  • Debt Reduction Efforts – The company is focused on paying down its massive debt load.
  • Macroeconomic Conditions – Recession fears could impact discretionary spending.
  • High Debt Load – Caesars carries significant debt, which could be a burden in downturns.
  • Economic Sensitivity – Consumer spending on entertainment is cyclical.
  • Regulatory Risks – Changes in gambling laws or tax rates could impact profitability.
  • Competition – Increasing competition from other casino operators and online platforms.

What is the most volatile stock in 2022?

McEwen Mining (TSE:MUX). Out of the 500 stocks on the S&P 500 and the 400+ Canadian stocks we have inside our stock screener, McEwen Mining, which has a beta of over 5.18, was the most volatile stock in 2022.A beta of 5.18 suggests that when the TSX Index moved 1%, McEwan moved more than 5 times that.

How do I find the most volatile stock?

You can utilize most stock screeners to identify the most volatile stocks. There are a variety of ways to define volatility. Most use beta, but other investors will look up stocks making the most significant moves over a week, two-week, or even a month-long timespan to take advantage of short-term volatility.

Over the short term, a stock with a low beta could be more volatile than usual because of a poor earnings report, a news release, or even a potential management change. So, short-term price movements in this regard are great screens.

Which type of stocks are most volatile?

You will typically see high volatility in the energy, mining, pharmaceutical stocks, and technology sectors. There are plenty of volatile stocks in other sectors, but these tend to have the highest betas.

Which investments are most volatile?

Investments in companies with small market capitalizations, low volumes, and overall low share floats tend to be the most volatile. Wide swings in stock price can happen based on just a few transactions if there is not a high volume of trade.

You will typically see this in the mining sector, particularly companies that are pre-revenue and just exploring. Single news headlines can send these stocks up by triple digits. Another highly volatile investment would be penny stocks, for most of the reasons stated above. The high volatility of these stocks and sectors makes them extremely popular for day traders.

Which sector is least volatile?

If you’re looking for lower volatility stocks, you’ll likely want to look to sectors that provide stable cash flows and contain larger blue-chip companies. The consumer staple, utility, and healthcare sectors often offer this.

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