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.
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 reward patient investors and two that might not be worth the risk.
Two Stocks to Sell:
PlayStudios (MYPS)
Rolling One-Year Beta: 1.12
Founded by a team of former gaming industry executives, PlayStudios (NASDAQ: MYPS) offers free-to-play digital casino games.
Why Are We Hesitant About MYPS?
- Products and services have few die-hard fans as sales have declined by 4.4% annually over the last two years
- Persistent operating losses suggest the business manages its expenses poorly
- Negative returns on capital show management lost money while trying to expand the business
At $1.35 per share, PlayStudios trades at 3.5x forward EV-to-EBITDA. If you’re considering MYPS for your portfolio, see our FREE research report to learn more.
Sonos (SONO)
Rolling One-Year Beta: 1.31
A pioneer in connected home audio systems, Sonos (NASDAQ: SONO) offers a range of premium wireless speakers and sound systems.
Why Should You Sell SONO?
- Annual revenue declines of 6.3% over the last two years indicate problems with its market positioning
- Poor expense management has led to operating losses
- Push for growth has led to negative returns on capital, signaling value destruction
Sonos’s stock price of $9.65 implies a valuation ratio of 46.1x forward P/E. To fully understand why you should be careful with SONO, check out our full research report (it’s free).
One Stock to Watch:
Cadence (CDNS)
Rolling One-Year Beta: 1.52
With the name chosen to reflect the idea of a repeating pattern or rhythm in electronic design, Cadence Design Systems (NASDAQ: CDNS) offers a software-as-a-service platform for semiconductor engineering and design.
Why Is CDNS Interesting?
- Billings growth has averaged 24% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Software is difficult to replicate at scale and leads to a best-in-class gross margin of 85.9%
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Cadence is trading at $315.27 per share, or 16.2x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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.
