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3 Volatile Stocks that Analysts Love Investing in high-volatility stocks can help deliver some unexpected gains. However, this doesn't mean that investors must become experts in market timing. A better way to select high-volatility stocks is...

By Chris Markoch

entrepreneur daily

This story originally appeared on MarketBeat

Depositphotos.com contributor/Depositphotos.com - MarketBeat

Take the guesswork out of investing in volatile stocks by looking at stocks with a high upside

Traders love high-volatility stocks because they have the potential to quickly make large price swings. Being on the right side of those trades sets them up for quick profits. But that doesn't mean that investors with an eye on the longer term should avoid high-volatility stocks. In fact, high-volatility stocks can help deliver some unexpected gains.

However, this doesn't mean that investors must become experts in market timing. Believe me, market timing rarely works out the way you hope. A better way to select high-volatility stocks is by looking for those stocks that are being given a buy rating from analysts. This will set you up for long-term success. And in this article, we're giving you three volatile stocks with high upside potential.

Visa (V)

Visa (NYSE:V) was seen as a strong recovery stock. And the company has been delivering improving revenue and earnings numbers in the last two quarters. However, investors may believe that Visa's numbers weren't quite as strong as hoped on a year-over-year basis. The payment processing giant has also suffered a setback as Amazon (NASDAQ:AMZN) has stopped accepting the company's credit cards as a payment method in the United Kingdom due to what it considers a high transaction fee. And, the company's decision to accept cryptocurrency payments has been coorelated with (but not the cause of) a drop in many leading cryptocurrencies.

Still with the stock down 14% from its 52-week high, it could be time to consider buying V stock. And one reason for that is that analysts give the stock a 12-month consensus price target of $271.44. This is not only a 25% upside from its current price, but it's a 7% increase from Visa's 52-week high.

Visa stock does have a neutral technical outlook at the moment. Investors may want to see how the stock performs heading into earnings in late January.

Suncor Energy (SU)

Traditional energy stocks have had a strong rally this year. And by the looks of it, 2022 is shaping up to be another strong year. Suncor Energy (NYSE:SU) is a Canadian-based integrated energy company that derives much of its revenue from mining the Canadian oil sands. Oil sands mines provide two benefits in that they are relatively inexpensive to operate and they have long production lives.

And like many companies in the energy space, Suncor is taking steps to diversify its portfolio to include some clean energy initiatives such as a wind farm and carbon capture technology.

Analysts give SU stock a consensus buy rating with a price target of $38.77 which gives it a 55% upside from its current price. However, investors should also consider Suncor for its dividend which has just returned to pre-pandemic levels and is now back in line with the energy sector.

AbbVie (ABBV)

For the first ten months of 2021, AbbVie (NYSE:ABBV) was a disappointment to growth investors. But ABBV stock has hit its stride and is closing out the year strong which could be a precursor of future growth in 2022.

Like many biopharmaceutical companies, the fortunes of AbbVie are largely tied to the company's pipeline. And that go a shot in the arm when the European Commission approved Skyrizi to treat active psoriatic arthritis. AbbVie has also applied to the European Commission to have Skyrizi approved for the treatment of Crohn's disease. If successful, that could be another catalyst for the stock.

Plus, AbbVie is a Dividend Aristocrat that is one year shy of joining the Dividend Kings club. This makes owning ABBV stock a good hedge against inflation.

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