Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here are two volatile stocks that could reward patient investors and one that could just as easily collapse.
One Stock to Sell:
Magnachip (MX)
Rolling One-Year Beta: 1.69
With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE: MX) is a provider of analog and mixed-signal semiconductors.
Why Is MX Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 18.5% annually over the last five years
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Cash burn has widened over the last five years, making us question whether it can reliably generate shareholder value
Magnachip’s stock price of $3.80 implies a valuation ratio of 0.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MX.
Two Stocks to Watch:
Doximity (DOCS)
Rolling One-Year Beta: 1.29
Founded in 2010 and named for a combination of “docs” and “proximity”, Doximity (NYSE: DOCS) is the leading social network for U.S. medical professionals.
Why Is DOCS on Our Radar?
- Average billings growth of 23.5% over the last year enhances its liquidity and shows there is steady demand for its products
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Doximity is trading at $59 per share, or 18.8x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Bloom Energy (BE)
Rolling One-Year Beta: 1.67
Working in stealth mode for eight years, Bloom Energy (NYSE: BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
Why Are We Backing BE?
- Annual revenue growth of 14.5% over the last five years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 68.2% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin is now positive, showing the company is at an important crossroads
At $22.75 per share, Bloom Energy trades at 50.4x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
