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1 Volatile Stock Worth Your Attention and 2 to Approach with Caution

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Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.

Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here is one volatile stock with massive upside potential and two that could just as easily collapse.

Two Stocks to Sell:

Unity (U)

Rolling One-Year Beta: 2.35

Started as a game studio by three friends in a Copenhagen apartment, Unity (NYSE: U) is a software as a service platform that makes it easier to develop and monetize new games and other visual digital experiences.

Why Does U Give Us Pause?

  1. Customers had second thoughts about committing to its platform over the last year as its billings averaged 10.2% declines
  2. Customers have churned over the last year due to the commoditized nature of its software, as reflected in its 96% net revenue retention rate
  3. Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment

Unity is trading at $28.80 per share, or 6.6x forward price-to-sales. Check out our free in-depth research report to learn more about why U doesn’t pass our bar.

Upland (UPLD)

Rolling One-Year Beta: 1.90

Founder Jack McDonald’s second software rollup, Upland Software (NASDAQ: UPLD) is a one stop shop for sales and marketing software, project management, HR, and contact center services for small and medium sized businesses.

Why Do We Think UPLD Will Underperform?

  1. Products and services have few die-hard fans as sales have declined by 4.4% annually over the last three years
  2. Sales are projected to tank by 22.7% over the next 12 months as its demand continues evaporating
  3. Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions

At $1.92 per share, Upland trades at 0.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than UPLD.

One Stock to Buy:

Broadcom (AVGO)

Rolling One-Year Beta: 2.41

Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ: AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.

Why Will AVGO Outperform?

  1. Market share has increased this cycle as its 27.6% annual revenue growth over the last two years was exceptional
  2. Offerings are mission-critical for businesses and result in a best-in-class gross margin of 75.8%
  3. Robust free cash flow margin of 41.3% gives it many options for capital deployment

Broadcom’s stock price of $274.11 implies a valuation ratio of 37.9x forward P/E. 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

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 Growth Stocks for this month. 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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