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The 8 Best High Beta Stocks For Traders That Crave Volatility

  • By Noah Zelvis
  • Aug 01, 2022
best high beta stocks

You likely already know that risk is an important consideration when making any investment. While measuring or quantifying a stock’s risk can be difficult, the beta score is one mechanism. The best high beta stocks see a lot of volatility relative to the movement of the rest of the stock market.

The S&P 500, a market-capitalization-weighted index of the 500 largest U.S. publically traded companies, is typically used as the benchmark index by which stocks calculate beta.

Since the companies on the list are so large, they’re typically considered very low risk.

Therefore, the S&P 500 index is given a beta of 1.0.

Individual stocks have a beta score ranking in relation to how much they deviate from the general movement of the market.

Any stock that swings more than the market (indicating it’s more volatile) will have a score above 1.0.

Further, any time a stock moves less than the overall market (indicating it’s less volatile) will have a beta score below 1.0.

Since volatility essentially translates to higher risk, this means there is a higher chance of making losses on your investment.

However, as you probably well know, higher risks also mean the potential for higher reward.

We’ve put together a list of some of the best beta stocks on the market for investors looking for hefty returns.

Best High Beta Stocks

Ranger Oil Corporation (NASDAQ: ROCC)

With so much buzz surrounding oil at present, it’s no surprise to see an oil company at the top of this list.

Ranger Oil develops and produces black gold along with natural gas and natural gas liquids in Southern Texas.

The company has been in business for over 140 years and had a heydey before a series of declines leading up to the onset of the Covid pandemic.

Ranger Oil has climbed back since early 2020, seeing 112% gains in the last year with more growth in sight.

Financial reports from March show a nearly 200% increase in revenue and even stronger earnings per share numbers.

Those looking for volatility will be pleased to see a 2.86 beta score alongside a $545 million market cap.

All signs point to Ranger Oil being a solid investment both now and in the foreseeable future.

SVB Financial Group (NASDAQ: SIVB)

Headquartered in California, SVB Financial Group has several well-known subsidiaries, including Silicon Valley Bank.

This bank has helped fund over 30,000 startups and is one of the largest banks in the United States.

Interestingly enough, the bank is also one of the largest financial service providers to Napa Valley wine producers.

SVB Financial offers asset management, brokerage and investment services, fund management services, and more between its many subsidiaries.

With a market cap of $48 billion and a beta value of 1.84, SVB has some nice volatility.

The firm really found its stride in 2021, sitting at an all-time high of $745 per share.

Shares have dropped considerably since then, but the company still sees a lot of day-to-day volatility.

Now may be the time to invest in a slight dip before SVB Financial Group shares reclaim record numbers.

Either way, SVB will continue to fund some of the world’s largest tech companies and most exciting startups in Silicon Valley. 

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More High Beta Energy Stocks

Matador Resources (NYSE: MTDR)

Matador Resources is an independent mining operation that explores, develops, and produces oil and natural gas.

The company focuses solely on locations in the United States, covering New Mexico, Texas, and Louisiana.

Operations are already underway in this region, allowing Matador to bring in much-needed revenue and income.

In fact, quarterly financials from March exceeded revenue and earnings per share goals by more than 10%.

Even with a solid foundation, Matador Resources has an incredibly high 3.78 beta value.

This high number speaks volumes to date traders, as the stock is over four times more volatile than average.

In addition, the share prices saw a 90% increase over the last year alone.

Even now, shares are hovering near all-time high values.

Devon Energy Corporation (NYSE: DVN)

Devon Energy Corporation is an energy producer with a focus on oil and gas.

The company has been in business since 1971 and focuses its attention onshore in North Dakota, Wyoming, Oklahoma, and Texas.

Devon generates close to 300,000 barrels of natural gas and 125,000 barrels of liquid natural gas in one quarter through multiple basins.

merger with WPX at the beginning of 2021 gives Devon even more capability to locate resources.

It is on the S&P 500 list with a market cap of over $39 billion.

Since last year at this time, Devon has seen a steady rise in share price resulting in 141% gains.

The company even pays out a healthy dividend of 5.85% to shareholders.

Furthermore, Devon Energy’s beta score is a very high 2.62 at present.

High Beta Mining Stocks

Marathon Oil Corporation (NYSE: MRO)

Marathon Oil is an American enterprise that mines black gold in several locations around the United States.

The company seeks to maintain a secure source of energy for the United States while also providing services to the world.

United States locations are complemented by an operation located in Equatorial Guinea.

With a desire to be sustainable, Marathon prioritizes social, environmental, and governance endeavors.

Marathon has been able to keep strong financials throughout the first quarter of 2022, seeing revenue growth of 50% across the board.

Share prices have increased accordingly, growing 110% over the last year.

The energy company has a market cap of $16.4 billion and is highly volatile with a beta score of 2.62.

If all that wasn’t impressive enough, Marathon also provides a 1.33% dividend yield to stockholders.

High Beta Retail Stocks

Bath and Body Works (NYSE: BBWI)

In August, the company formerly known as L Brands split into two separate entities with two unique stock tickers.

Bath & Body Works and Victoria’s Secret now stand apart from each other and no longer fall under the same umbrella.

Even before the separation, Bath and Body Works has shown itself to be a strong stock.

Share prices appear to be rebounding after a steady drop throughout the first half of 2022, but the company was able to exceed financial goals.

Currently, the company has a market cap of $8.5 billion with a beta index score of 1.71, marking it as relatively volatile in comparison to the broader market.

high beta stocks

With eCommerce becoming an increasingly important aspect of our lives, Bath and Body Works will likely continue to perform well.

Current conditions suggest investors are enthusiastic about the company’s changes with the brand split.

Share prices look to be on the rise once again, potentially marking it a rare opportunity to buy this current dip.

Overstock.com Inc. (NASDAQ: OSTK)

Overstock.com is an exclusively online retailer that’s grown from startup to billion-dollar retailer over the last 20 years.

The company sells a broad range of products at marked-down prices by purchasing overstocked merchandise.

It uses the latest technology from augmented reality to 3D customer experiences to make its site stand out in a crowded online world.

With a market capitalization of nearly $1.5 billion, Overstock is clearly well-rooted in the industry.

Shares have been moving the opposite direction of late as Overstock struggles to meet its financial goals, creating waves in the process.

The volatility that shares are seeing now likely comes from a sky-high 3.81 beta score.

High Beta Automotive Stocks

Commercial Vehicle Group, Inc. (NASDAQ: CVGI)

Commercial Vehicle Group is a supplier to not only the automotive industry but also to vehicles in agriculture, mining, industrial, warehousing, and more.

The company makes mechanical assemblies, structures, wire harnesses, and other components that these vehicles need to operate.

With electric cars on the rise, Commercial Vehicle Group is expanding operations to cover this industry as well.

The supplier’s plastics brand, AdvancTEK, was recently created to offer more products to an even wider range of customers.

high beta stocks

Commercial Vehicle Group consistently meets its target for revenue and earnings per share, doing so in the first part of 2022 as well.

It has a current market cap of $224 million and a beta score of 3.17.

Share prices are certainly seeing the volatility that comes with high beta values, with significant ups and downs.

This ticker may be undervalued, which could make it a great addition to any portfolio.

Should You Buy High Beta Stocks?

High beta stocks certainly can be a good investment option for traders who like to remain active.

They come with significant risks, but they also have a huge potential for high returns.

Not all high betas are created equal, so it’s essential to research before making any investment decisions. 

The higher a stock gets from a beta score of 1.0, the more volatile the stock becomes.

Volatility often comes with huge returns, but it can also set you up for huge losses.

These tickers require a careful eye and keen judgment on when to buy and when to sell.

Where to Buy High Beta Stocks

To best control volatility, it’s best to pick up high beta stocks from major exchanges that trade at higher volumes.

Securities on OTC markets can be that much harder to predict, and there’s often less information available on a company.

Robinhood and Webull are well-known platforms for trading on exchanges like NASDAQ and the NYSE.

Both platforms offer commission-free trading and free stocks simply for signing up.

Robinhood touts an easy-to-understand user interface designed for traders at any level of the game.

Webull has more trading tools for investors to use when hunting for that next breakout stock.

High Beta Stocks: Final Thoughts

High beta stocks have huge potential, but they also come with plenty of risk.

Some industries are inherently volatile, which reflects in the stock market performance of these companies.

It’s also common for securities to experience volatility if they’ve struggled with public controversies or have had multiple acquisitions in a short period of time. 

It can be challenging to figure out exactly why a stock is volatile.

However, these stocks could be great for investors with a high risk tolerance, as they come with massive potential for returns.

High Beta Stocks FAQ

What’s a High Beta Stock?

High beta stocks are more volatile than the broader market, typically seeing significant upward and downward swings over the course of a day.

Any value over 1.0 indicates a ticker is subject to move more than the overall market itself.

Are High Beta Stocks Good?

High beta stocks speak to day traders who want to locate tickers they can buy low and sell high in the course of a few hours.

If you know how to capitalize on this type of trading, high beta securities have just the volatility you’re looking for.

How Do I Choose a High Beta Stock?

Using a stock’s beta score is an easy way to identify how volatile a stock typically is.

After identifying stocks with a lot of movement, those that have upward momentum are most likely to see bigger gains and shorter falls.

What Are High Beta Stocks Examples?

The stocks presented in this list are some of the best high beta stocks currently on the market.

Matador Resources has a very high 3.78 beta score, and share prices have been trending upward for a while.

What Beta is Good for Day Training?

With the market assigned a beta value of 1.0, anything higher is considered a high beta stock.

The highest numbers indicate the most volatility, which could be a blessing or a curse if misplayed.

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Noah is an American copywriter on a mission to help clarify the nuances of the financial world. When he's not working, you’ll likely find him running or traveling.