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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here is one volatile stock that could deliver huge gains and two best left to the gamblers.
Two Stocks to Sell:
Domo (DOMO)
Rolling One-Year Beta: 1.79
Named for the Japanese word meaning "thank you very much," Domo (NASDAQ: DOMO) provides a cloud-based business intelligence platform that connects people with real-time data and insights across organizations.
Why Do We Steer Clear of DOMO?
- Offerings couldn’t generate interest over the last year as its billings have averaged 1.1% declines
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
Domo’s stock price of $11.44 implies a valuation ratio of 1.5x forward price-to-sales. To fully understand why you should be careful with DOMO, check out our full research report (it’s free for active Edge members).
Bread Financial (BFH)
Rolling One-Year Beta: 1.48
Formerly known as Alliance Data Systems until its 2022 rebranding, Bread Financial (NYSE: BFH) provides credit cards, installment loans, and savings products to consumers while powering branded payment solutions for retailers and merchants.
Why Do We Think BFH Will Underperform?
- Annual sales declines of 6.1% for the past two years show its products and services struggled to connect with the market during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
Bread Financial is trading at $67.73 per share, or 7.7x forward P/E. Dive into our free research report to see why there are better opportunities than BFH.
One Stock to Watch:
Lazard (LAZ)
Rolling One-Year Beta: 1.84
Tracing its roots back to 1848 when it began as a dry goods merchant in New Orleans, Lazard (NYSE: LAZ) is a global financial advisory and asset management firm that provides strategic advice to corporations, governments, institutions, and wealthy individuals.
Why Are We Positive On LAZ?
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $50.50 per share, Lazard trades at 14.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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
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