A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south. While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here is one volatile stock that could reward patient investors and two that could just as easily collapse.
Two Stocks to Sell:
RXO (RXO)
Rolling One-Year Beta: 1.30
With access to millions of trucks, RXO (NYSE: RXO) offers full-truckload, less-than-truckload, and last-mile deliveries.
Why Are We Out on RXO?
- 6.2% annual revenue growth over the last two years was slower than its industrials peers
- Earnings per share fell by 38.8% annually over the last four years while its revenue grew, showing its incremental sales were much less profitable
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
At $16.09 per share, RXO trades at 56.9x forward P/E. To fully understand why you should be careful with RXO, check out our full research report (it’s free).
IAC (IAC)
Rolling One-Year Beta: 1.52
Originally known as InterActiveCorp and built through Barry Diller's strategic acquisitions since the 1990s, IAC (NASDAQ: IAC) operates a portfolio of category-leading digital businesses including Dotdash Meredith, Angi, and Care.com, focusing on digital publishing, home services, and caregiving platforms.
Why Do We Avoid IAC?
- Annual sales declines of 1.3% for the past five years show its products and services struggled to connect with the market during this cycle
- Earnings per share have contracted by 51% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
- Negative returns on capital show management lost money while trying to expand the business
IAC is trading at $36.50 per share, or 29.5x forward P/E. If you’re considering IAC for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Atlassian (TEAM)
Rolling One-Year Beta: 1.51
Founded by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian (NASDAQ: TEAM) provides software as a service that makes it easier for large teams of software developers to manage projects, especially in software development.
Why Do We Love TEAM?
- Average billings growth of 14.7% over the last year enhances its liquidity and shows there is steady demand for its products
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Atlassian’s stock price of $197.15 implies a valuation ratio of 8.9x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. 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-micro-cap company Kadant (+351% 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.
