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2 Volatile Stocks to Keep an Eye On and 1 We Find Risky

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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.

These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here are two volatile stocks that could reward patient investors and one that could just as easily collapse.

One Stock to Sell:

ePlus (PLUS)

Rolling One-Year Beta: 1.30

Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ: PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.

Why Do We Steer Clear of PLUS?

  1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
  2. Projected sales growth of 3.2% for the next 12 months suggests sluggish demand
  3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

At $71.73 per share, ePlus trades at 13.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than PLUS.

Two Stocks to Watch:

SentinelOne (S)

Rolling One-Year Beta: 1.35

Built on the principle of "fighting machine with machine," SentinelOne (NYSE: S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.

Why Are We Fans of S?

  1. ARR growth averaged 28.1% over the last year, showing customers are willing to take multi-year bets on its software
  2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable three-year growth trajectory
  3. Free cash flow margin is anticipated to expand by 7 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends

SentinelOne’s stock price of $16.76 implies a valuation ratio of 5.2x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Netflix (NFLX)

Rolling One-Year Beta: 1.26

Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.

Why Is NFLX a Good Business?

  1. Global Streaming Paid Memberships have grown by 13.9% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 27.8% exceeded its revenue gains over the last three years
  3. Free cash flow margin jumped by 19.9 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Netflix is trading at $1,208 per share, or 35x forward EV/EBITDA. 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

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 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-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

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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