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. That said, here is one volatile stock that could reward patient investors and two that could just as easily collapse.
Two Stocks to Sell:
Sirius XM (SIRI)
Rolling One-Year Beta: 1.29
Known for its commercial-free music channels, Sirius XM (NASDAQ: SIRI) is a broadcasting company that provides satellite radio and online radio services across North America.
Why Should You Sell SIRI?
- Demand for its offerings was relatively low as its number of core subscribers has underwhelmed
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 36.6% annually
- Eroding returns on capital suggest its historical profit centers are aging
Sirius XM’s stock price of $21.91 implies a valuation ratio of 7.3x forward P/E. Read our free research report to see why you should think twice about including SIRI in your portfolio.
Genco (GNK)
Rolling One-Year Beta: 1.11
Headquartered in NYC, Genco (NYSE: GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes.
Why Do We Think GNK Will Underperform?
- Performance surrounding its owned vessels has lagged its peers
- Earnings per share have dipped by 43.6% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Free cash flow margin shrank by 6.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Genco is trading at $13.93 per share, or 21.3x forward P/E. To fully understand why you should be careful with GNK, check out our full research report (it’s free).
One Stock to Buy:
Datadog (DDOG)
Rolling One-Year Beta: 1.44
Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ: DDOG) is a software-as-a-service platform that makes it easier to monitor cloud infrastructure and applications.
Why Is DDOG a Top Pick?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Robust free cash flow margin of 29.4% gives it many options for capital deployment
At $121.62 per share, Datadog trades at 13.2x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. 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.
