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1 Volatile Stock with Solid Fundamentals and 2 to Be Wary Of

BIGC Cover Image

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.

At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here is one volatile stock with massive upside potential and two best left to the gamblers.

Two Stocks to Sell:

BigCommerce (BIGC)

Rolling One-Year Beta: 1.32

Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ: BIGC) provides software for businesses to easily create online stores.

Why Do We Pass on BIGC?

  1. ARR growth averaged a weak 4% over the last year, suggesting that competition is pulling some attention away from its software
  2. Estimated sales growth of 3.7% for the next 12 months implies demand will slow from its three-year trend
  3. Suboptimal cost structure is highlighted by its history of operating margin losses

At $4.81 per share, BigCommerce trades at 1.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BIGC.

Gap (GAP)

Rolling One-Year Beta: 1.12

Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap (NYSE: GAP) is an apparel and accessories retailer selling casual clothing to men, women, and children.

Why Are We Wary of GAP?

  1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.3%
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

Gap’s stock price of $21.55 implies a valuation ratio of 9.1x forward P/E. If you’re considering GAP for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Braze (BRZE)

Rolling One-Year Beta: 1.30

Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ: BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns.

Why Are We Fans of BRZE?

  1. Ability to secure long-term commitments with customers is evident in its 23.1% ARR growth over the last year
  2. Forecasted revenue growth of 18.5% for the next 12 months indicates its momentum over the last three years is sustainable
  3. Operating margin improvement of 8.5 percentage points over the last year demonstrates its ability to scale efficiently

Braze is trading at $26.02 per share, or 3.7x forward price-to-sales. Is now the right time to buy? See for yourself 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 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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