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. Keeping that in mind, here is one volatile stock that could reward patient investors and two that could just as easily collapse.
Two Stocks to Sell:
Inspired (INSE)
Rolling One-Year Beta: 1.52
Specializing in digital casino gaming, Inspired (NASDAQ: INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.
Why Are We Wary of INSE?
- Sales trends were unexciting over the last two years as its 1.1% annual growth was below the typical consumer discretionary company
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Inspired’s stock price of $8.33 implies a valuation ratio of 2.2x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including INSE in your portfolio.
Flagstar Financial (FLG)
Rolling One-Year Beta: 1.11
Tracing its roots back to 1859 and rebranded from New York Community Bancorp in 2024, Flagstar Financial (NYSE: FLG) is a bank holding company that offers commercial and consumer banking services, with specialties in multi-family lending, mortgage originations, and warehouse lending.
Why Should You Dump FLG?
- Sales tumbled by 9.3% annually over the last two years, showing market trends are working against its favor during this cycle
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 21% annually while its revenue grew
- Tangible book value per share tumbled by 6.7% annually over the last five years, showing banking sector trends are working against its favor during this cycle
Flagstar Financial is trading at $12.05 per share, or 0.7x forward P/B. Dive into our free research report to see why there are better opportunities than FLG.
One Stock to Buy:
DoorDash (DASH)
Rolling One-Year Beta: 1.43
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE: DASH) operates an on-demand food delivery platform.
Why Are We Bullish on DASH?
- Orders have grown by 20.3% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Additional sales over the last three years increased its profitability as the 111% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin jumped by 11.9 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $246.29 per share, DoorDash trades at 34.4x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 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 Comfort Systems (+782% 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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