3 Stocks That Could Benefit From Bigger Fed Driven Volatility

Fed Chair Kevin Warsh’s push for fewer rate meetings and less frequent guidance could make each policy decision a bigger market event, and that often brings sharper moves in volatility-related instruments. For investors who follow volatility-driven trading and investment products, this shift in Fed communication could reshape how certain stocks behave around macro headlines and data releases. This article looks at 3 stocks from our Volatility-Driven Trading and Investment Products screener that are closely exposed to this news. The focus is on how their business models connect to volatility, and what that might mean for risk and opportunity.

CAB Payments Holdings (LSE:CABP)

Overview: CAB Payments Holdings is a London based financial services company that helps banks, fintechs, corporates and international organisations move money across borders and manage foreign exchange in both major and harder to reach currencies.

Operations: CAB Payments generates £86.1m of revenue from unclassified services, with geographic exposure spread across the UK, Africa, the Americas, Europe, Asia and the Middle East.

Market Cap: £206.1m

CAB Payments Holdings sits at an intersection for investors who care about volatility. It earns fees from FX and cross border payment flows, so more active trading and sharper market moves can mean heavier client activity. Some analysts currently expect earnings growth and view the stock as trading below their estimates of fair value, while recent takeover interest from StoneX highlighted how external buyers view the underlying franchise. On the risk side, the company relies on external funding rather than customer deposits and operates in tightly regulated emerging markets, which can add pressure when conditions turn. With upcoming Federal Reserve communication potentially set to inject more energy into FX markets, the next phase for CAB Payments could be pivotal for anyone tracking this story closely.

CAB Payments Holdings sits in an unusual spot where FX volatility, takeover interest and analyst expectations all intersect, yet most investors may still be missing the full picture on its earnings potential. To see how those moving parts stack up against each other, review the analyst forecasts for CAB Payments Holdings and what it could reveal about the next twist in this story.

W.A.G payment solutions (LSE:EWG)

Overview: W.A.G payment solutions runs a digital payments and mobility platform for commercial road transport fleets across Europe, handling fuel and toll payments, fleet management, tax refunds and add on financial services like insurance, FX and eWallets. It aims to simplify life for haulage operators by combining payments, telematics and back office tools in one system.

Operations: W.A.G payment solutions generates about €2.18b from Payment Solutions and €129.7m from Mobility Solutions.

Market Cap: £761.7m

W.A.G payment solutions appears in this volatility focused screener because its payments and data platform is closely linked to the day to day operation of trucking fleets. The stock carries a complex mix of signals. Analysts expect very strong earnings growth even as revenue is forecast to decline sharply. The current P/S multiple sits well below many peers, which some investors view as a potential value opportunity. At the same time, the company relies on external funding rather than customer deposits, has a history of low margins and has recently absorbed a sizeable one off loss. With a large shareholder now selling a sizeable stake through an accelerated bookbuild, shorter term sentiment and liquidity could shift quickly around a business that is tightly linked to trading activity and macro driven transport volumes.

W.A.G payment solutions sits at the point where strong earnings expectations and a low P/S multiple could be masking what really matters next. Get the fuller picture in the analyst forecasts for W.A.G payment solutions and what might be hiding behind that forecast.

Bullish (BLSH)

Overview: Bullish runs a global digital asset platform that combines a crypto exchange, market data, and index services, along with CoinDesk’s news and events, to serve both professional investors and traditional finance institutions that want exposure to digital assets.

Operations: Bullish currently generates about US$267.9m of revenue from unclassified services tied to its digital asset and information platforms.

Market Cap: US$3.4b

Bullish stands out in this volatility focused screener because its exchange and data businesses can become more active when crypto and macro headlines create sharper swings in prices and trading interest. Earnings and revenue are both forecast to grow strongly over the next few years, yet the company is still loss making and carries funding risk because all liabilities come from external borrowings rather than insured deposits. The stock trades on a high P/S multiple and recent estimate cuts have kept sentiment fragile, even as product developments in tokenization and easing crypto rules attract attention. With the Fed expected to offer fewer signals and potentially drive bigger volatility spikes, investors following Bullish may want to understand how this mix of growth potential and balance sheet risk compares with its current valuation.

Bullish is where accelerating crypto interest meets a stretched P/S multiple and ongoing losses. To see how that tension really looks beyond the headlines, look at the analyst forecasts for Bullish and the funding twist most investors are missing.

The three stocks in this article are only the starting point, since the full Volatility-Driven Trading and Investment Products screener surfaces 15 more companies with equally compelling volatility linked stories. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter most to you so you can focus on the opportunities in this space that best match your own convictions.

Take Control of Your Investment Journey

If W.A.G payment solutions or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond Volatility?

Some stocks are already building breakout momentum while others are dropping quietly under the radar for now. Spot fresh ideas before the crowd catches up and act now.

• Target income streams by scanning the 5 dividend fortresses that could help steady your portfolio while prices move around key macro headlines.
• Review the 8 top copper producer stocks focused on copper-related opportunities linked to electrification and infrastructure themes.
• Explore the 36 robotics and automation stocks where select companies are building businesses around robots, sensors, and factory upgrades.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com