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. Keeping that in mind, here is one volatile stock that could reward patient investors and two best left to the gamblers.
Two Stocks to Sell:
8x8 (EGHT)
Rolling One-Year Beta: 1.50
Founded in 1987, 8x8 (NYSE: EGHT) provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners.
Why Do We Pass on EGHT?
- Customers had second thoughts about committing to its platform over the last year as its billings averaged 1.4% declines
- Demand will likely fall over the next 12 months as Wall Street expects flat revenue
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
8x8’s stock price of $1.80 implies a valuation ratio of 0.3x forward price-to-sales. To fully understand why you should be careful with EGHT, check out our full research report (it’s free).
Inspired (INSE)
Rolling One-Year Beta: 1.40
Specializing in digital casino gaming, Inspired (NASDAQ: INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.
Why Do We Think Twice About INSE?
- Muted 1.9% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.3%
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 3.5% for the last two years
Inspired is trading at $7.98 per share, or 2.1x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including INSE in your portfolio.
One Stock to Watch:
Carvana (CVNA)
Rolling One-Year Beta: 2.58
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 Does CVNA Catch Our Eye?
- Retail Units Sold have increased by an average of 13.8% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 45% outpaced its revenue gains
- Free cash flow margin increased by 30.2 percentage points over the last few years, giving the company more capital to invest or return to shareholders
At $339.50 per share, Carvana trades at 23.7x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
