Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
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 deliver huge gains and two that might not be worth the risk.
Two Stocks to Sell:
Peloton (PTON)
Rolling One-Year Beta: 2.18
Started as a Kickstarter campaign, Peloton (NASDAQ: PTON) is a fitness technology company known for its at-home exercise equipment and interactive online workout classes.
Why Should You Dump PTON?
- Sluggish trends in its connected fitness subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
- Persistent operating margin losses suggest the business manages its expenses poorly
- Free cash flow margin is forecasted to shrink by 2.7 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
Peloton is trading at $8.37 per share, or 9.4x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than PTON.
Illumina (ILMN)
Rolling One-Year Beta: 1.19
Pioneering the ability to read the human genome at unprecedented speed and affordability, Illumina (NASDAQ: ILMN) develops and sells advanced DNA sequencing and microarray technologies that allow researchers and clinicians to analyze genetic variations and functions.
Why Do We Steer Clear of ILMN?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 6.3% annually
- ROIC of -0.2% reflects management’s challenges in identifying attractive investment opportunities
Illumina’s stock price of $100.70 implies a valuation ratio of 22.7x forward P/E. If you’re considering ILMN for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Enova (ENVA)
Rolling One-Year Beta: 1.50
Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International (NYSE: ENVA) provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.
Why Are We Backing ENVA?
- Annual revenue growth of 23.4% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Annual book value per share growth of 25.4% over the last five years was superb and indicates its capital strength increased during this cycle
At $110.52 per share, Enova trades at 8.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 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 Tecnoglass (+1,754% 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
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