The hottest stocks on the market are those with the most active price movements, sometimes excessively and even irrationally. And, of course, they're a favorite among speculative investors. These movements are due not only to their own stock market performance but also to corporate transactions they may undertake in the near future, which could generate significant gains (or losses) in a single trading session.
A quick look at the offerings on the Spanish continuous market reveals a number of companies that operate under these characteristics. You won't have any trouble finding them, as you'll see in this article. These companies typically experience a higher percentage of price increases or decreases than other stocks . It's common to see them surge in the financial markets by more than 5%, and vice versa. It's undoubtedly a paradise for profiting from trades in just a few days, and in some cases, even within the same trading session, through intraday trading.
If you're looking for excitement, this is undoubtedly your best choice, far superior to more stable options that don't experience significant price fluctuations. These stocks exhibit strong price movements, with differences that can reach over 10% in a single trading day , and sometimes even more explosively. They are stocks from which you can reap substantial profits, though caution is advised, as you can easily become trapped in them, and losses can weigh down your investment for years to come.
If you'd like to learn about the unique stocks that possess these characteristics, this article presents a series of options that only the most aggressive investors will be able to trade. The risks are significantly higher, but in many cases, they currently represent a genuine buying opportunity due to their low share prices—prices that were completely unimaginable just a few years ago.
The time has come for you to know the names of these listed companies. Surely most will be on the lips of all savers, yours too, but there will be others that will surprise you, and may even give you an idea of how to channel investments from now on. A good part of these proposals come from companies with great specific weight in the Spanish benchmark index, the Ibex-35. It is convenient that you take this into account when preparing the investment portfolio. They are not peas, as you may have guessed at the beginning.
ArcelorMitall, stocks bearish
If there's one stock with a clear downward trend over the last few years, it's this steel company. Its negative trajectory in the financial markets seems endless . It always looks like it might recover, but in the end, the same thing always happens: its prices plummet, and how, as you can see in its charts.
Over the past twelve months, its shares have depreciated by more than 50%. This means that if you invested €10.000 in this company, you now only have around €4.000 available. Indeed, during this period, its shares have fallen from €10 to just €3, which is the current price. Its price drops are very sharp, lasting for many days, as are its market rebounds, although these are rather limited, consisting of only occasional rallies.
At its current trading levels, several financial analysts believe it's a good time to start investing to try and generate returns on savings in the medium to long term. Its potential for appreciation is enormous, but it needs to materialize. Something that hasn't happened so far. It's been significantly affected by the decline in Chinese consumer spending , but especially by the depreciation of base metals in international markets.
Repsol, spinning with oil
Another particularly volatile stock, weighed down by the brutal fall in oil prices. Its dependence on this financial asset is extreme , and until oil prices recover, there's nothing to be done about the Spanish oil company. Its share price is significantly discounted. And when prices do rise again, the surge will be dramatic, much to the delight of small investors who have taken positions.
Just twelve months ago, its share price was around €19. Now, it's struggling to stay below €9 per share. In this case, its depreciation in the markets has also been significant, with its shares losing 60% of their value . This decline has been unusually severe, a problem it had experienced in previous years. On the positive side, it boasts a high dividend, one of the most profitable in the Spanish stock market, at almost 8%. This is an incentive for more defensive investors.
Abengoa or the resolution of your problems
This Seville-based company is the epitome of troubled stocks, and trading them is the most difficult of all, at least until its financing problems are resolved. In just a few weeks, its shares have plummeted from €3 to a single euro, a consequence of its serious financial difficulties. It's also possible to make a lot of money by opening positions in the stock, but with the risk of losing practically everything. The risk-reward ratio in this case is not attractive.
It is a very sensitive alternative that will surely not be suitable for your interests, especially if you are not used to operating with such dangerous companies due to price fluctuations. That is why it is not surprising that stock brokers do not recommend taking positions, but rather the opposite. And of course while the future of the company is not definitively clarified.
FCC, the worst of the construction companies
The company's poor financial situation is one of the reasons why its shares are currently trading below €6, after having remained above €10 for a long time. Its shareholding structure is another source of controversy that is negatively impacting its performance in the equity markets.
It's even being overtaken by the increase in contracts from rival companies within its own sector. Even so, if its financing problems are resolved in the short term, it boasts one of the most expansive potentials for appreciation in the stock market. Despite this, it hasn't quite taken off, even with the favorable opinions of some brokers who recommend it to their clients.
Sacyr, excessive dependence on Repsol
It is another of the major casualties of the recent declines in Spanish equities. But in this case, the explanation is clearly atypical for the sector: its excessive exposure to oil as a consequence of the integration of some of its shares into the oil company Repsol. Given this scenario, it is not surprising that its performance has been worse than other construction companies over the last twelve months.
This is another example of a very steep decline, plummeting from €3 to its current value of €1.50. Its connection to oil has only worsened its technical outlook, resulting in significant price drops. Even the economic recovery hasn't helped boost its share price, much to the dismay of its small and medium-sized shareholders.
Gamesa, in the heat of mergers
While we've discussed hot stocks that have shown a clear downward trend, it's worth mentioning one company that has followed the opposite path. This is Gamesa, which has allowed investors who bought its shares about a year ago to realize substantial capital gains. Its appreciation in the financial markets has been continuous and rapid , with daily increases reaching almost 10%, and even more in some sessions.
The wind turbine manufacturer admitted last week in a statement to the Spanish National Securities Market Commission (CNMV) "the existence of talks aimed at a potential integration of certain wind energy businesses with Siemens through a merger." This news was welcomed by the markets, with share prices rising by 18%, and these movements could intensify further during the coming trading sessions.
Telefónica or the ballast of Brazil
And finally, we cannot forget the Spanish telecommunications operator. Despite being one of the most stable stocks over the last few decades, it has not been able to maintain that role this time. Its shares have depreciated significantly, falling from €14 to €9 , a drop of nearly 30%. Just six months ago, it was one of the best performers in the benchmark index.
Its exposure to Brazil has been one of the most significant factors driving this downward trend in financial markets. Indeed, the latest economic data from this Latin American country indicate that it has entered a recession, which will affect the accounts of the company chaired by César Alerta. However, it does have one of the most profitable dividends on the Spanish stock exchange, paid in two annual installments in June and November, with a yield exceeding 5%.