High volatility doesn’t always mean high risk - some companies experience wild price swings but still trend reliably upward over time. In fact, many of the market’s biggest winners have been highly volatile stocks.
But not all of these stocks are created equal, which is why we built StockStory - to help you find the right balance of risk and reward. Keeping that in mind, here are three volatile stocks that could reward patient investors.
Carvana (CVNA)
Rolling One-Year Beta: 2.37
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Why Is CVNA on Our Radar?
- Retail Units Sold have grown by 23.3% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 40.5% annually, topping its revenue gains
- Free cash flow margin grew by 22 percentage points over the last few years, giving the company more chips to play with
Carvana’s stock price of $391.05 implies a valuation ratio of 23x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Airbnb (ABNB)
Rolling One-Year Beta: 1.41
Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ: ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Why Is ABNB a Top Pick?
- Nights and Experiences Booked have increased by an average of 10% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- ABNB is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $123.30 per share, Airbnb trades at 17.7x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Allison Transmission (ALSN)
Rolling One-Year Beta: 1.12
Helping build race cars at one point, Allison Transmission (NYSE: ALSN) offers transmissions to original equipment manufacturers and fleet operators.
Why Are We Fans of ALSN?
- Offerings are mission-critical for businesses and result in a best-in-class gross margin of 47.9%
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 29.3%, and its rise over the last five years was fueled by some leverage on its fixed costs
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Allison Transmission is trading at $84.45 per share, or 12.3x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound 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 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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