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.
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:
Intel (INTC)
Rolling One-Year Beta: 1.80
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.
Why Do We Avoid INTC?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.9% annually over the last five years
- Inability to adjust its cost structure while its revenue declined over the last five years led to a 46.7 percentage point drop in the company’s operating margin
- Free cash flow margin dropped by 25 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Intel’s stock price of $21.46 implies a valuation ratio of 35.7x forward P/E. Read our free research report to see why you should think twice about including INTC in your portfolio.
Moderna (MRNA)
Rolling One-Year Beta: 1.06
Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ: MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.
Why Do We Pass on MRNA?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 54.1% annually over the last two years
- Free cash flow margin shrank by 309.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Moderna is trading at $25.45 per share, or 4.7x forward price-to-sales. Check out our free in-depth research report to learn more about why MRNA doesn’t pass our bar.
One Stock to Buy:
The Trade Desk (TTD)
Rolling One-Year Beta: 1.58
Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ: TTD) offers cloud-based software that uses data to help advertisers better plan, place, and target their online ads.
Why Are We Bullish on TTD?
- Billings have averaged 26.1% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 17.6%, and it turbocharged its profits by achieving some fixed cost leverage
At $68.58 per share, The Trade Desk trades at 11.7x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 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 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
