When markets are shaken by events such as a sudden 9% jump in oil prices, weak preliminary results from IBM, strong earnings from major U.S. banks, shifting inflation expectations, and legal pressure on a large media merger, trading screens can light up with opportunity and risk. Our Volatility and Trading Activity Beneficiaries screener focuses on companies linked to financial exchanges and trading activity that may be sensitive to this kind of news flow. In this article, you will see 3 stocks from the screener that appear positively exposed to these catalysts, with clear reasons to consider either investing or stepping aside.

PicS (PICS)

Overview: PicS is a Brazil based digital financial platform that brings payments, banking, credit, insurance, and shopping into a single app for millions of consumers and businesses, aiming to be a one stop wallet for everyday money management and spending.

Operations: PicS generates most of its roughly R$11.7b in annual revenue from Consumer Banking, with smaller contributions from Institutional clients and small and medium sized businesses, almost entirely in Brazil.

Market Cap: US$1.54b

PicS sits at the intersection of rising digital finance usage in Brazil and spikes in market activity, as higher trading volumes and volatility can feed into its transaction based revenues while its app deepens engagement across payments, credit and commerce. Forecasts of strong earnings and revenue growth, together with a low P/E and higher margins, frame a company that some investors may see as mispriced. However, the story is not risk free, with fast credit expansion, reliance on wholesale funding, governance growing pains and an IPO related lawsuit all worth close attention. For investors who want exposure to a high growth financial platform that could be sensitive to trading and volatility trends, PicS may warrant a closer look.

PicS looks like a fast growing financial platform priced as if the story is still unproven, which makes the analyst forecasts especially important to scrutinise through the analyst forecasts for PicS that could reveal the twist in this growth meets risk story

IP Group (LSE:IPO)

Overview: IP Group (LSE:IPO) is a London based investor that backs science and technology companies from universities and research hubs, using its own balance sheet and third party capital to support businesses from incubation and seed through to later stage growth across sectors such as energy, healthcare, deeptech and cleantech.

Operations: IP Group’s reported revenue is heavily concentrated in its Healthier Future portfolio excluding Oxford Nanopore at £125m, with smaller contributions from third party fund management at £8.2m, while other venture investing segments currently report losses.

Market Cap: £564.5m

IP Group provides exposure to a pool of science based companies that can respond directly to periods of higher trading activity, IPO openings and renewed appetite for complex assets. These often come into focus when volatility spikes and banks report strong markets revenues. Analyst forecasts for fast revenue and earnings growth currently sit alongside a P/E that is below broad UK and sector averages. The recent approach from Railpen indicates that some outside investors see value in the portfolio and its Oxford Nanopore and Istesso stakes. The flip side is that exits depend on supportive funding and M&A windows, and several holdings are at clinical or technical inflection points, so both execution and market conditions are important for IP Group’s outcome.

IP Group’s mix of science assets and a lower P/E hints at a story the market may not be fully pricing. To see how that tension shows up in the numbers, start with the DCF valuation analysis for IP Group. Then look closely at what might shift when exit markets reopen.

XPS Pensions Group (LSE:XPS)

Overview: XPS Pensions Group is a UK based specialist that advises and administers workplace pension schemes, helping employers, trustees and insurers with everything from scheme design and governance to day to day administration, data work and member communications.

Operations: XPS Pensions Group generates about £262.7m in revenue from consulting and administration services for pension schemes, all from the United Kingdom.

Market Cap: £657.8m

XPS Pensions Group operates in a part of financial services that can become especially relevant when markets are unsettled, as pension schemes examine funding levels, hedging and member outcomes during periods of volatility. The company combines steady revenue growth with forecasts for earnings and return on equity to improve, yet shares trade below some fair value estimates after a year when profits and margins dipped. That mix of earnings quality signals, a 4% dividend yield that is not fully covered, and higher funding risk from relying on external borrowing rather than customer deposits creates a tension investors may find noteworthy. The recent results and dividend update only tell part of the story of the current investment case for XPS.

For XPS Pensions Group, steady revenue growth and an uncovered 4% yield hint at a story investors may be only half seeing. Start with the analysis report for XPS Pensions Group to identify what could shift this balance between income appeal and funding risk.

The three stocks in this article are just a starting point. The full Volatility and Trading Activity Beneficiaries screener highlights 16 more companies with equally compelling stories that could sit at the crossroads of market volume, pricing swings and earnings sensitivity, all captured in the Volatility and Trading Activity Beneficiaries screener. Use Simply Wall St to identify and analyze the specific catalysts, valuation signals and business narratives that matter most to you so you can focus on the highest conviction ideas within this theme.

Take Control of Your Investment Journey

If PicS 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 Before They Fly?

New stock ideas can move from quiet to breakout quickly, and by the time momentum is obvious, the ideal entry may be gone. Scan these curated picks now and get in early.

• Spot resilient businesses that can keep compounding through shocks by running the list of solid balance sheet and fundamentals (47 results) before the crowd catches on to their strength.
• Ride structural shifts in energy policy and infrastructure by filtering companies in the 89 nuclear energy infrastructure stocks while they are still under the radar.
• Position ahead of the next automation wave by zeroing in on high conviction opportunities from the 32 robotics and automation stocks before valuations reflect their full potential.

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.