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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here is one volatile stock that could reward patient investors and two that could just as easily collapse.
Two Stocks to Sell:
EverQuote (EVER)
Rolling One-Year Beta: 1.19
Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Why Are We Cautious About EVER?
- Excessive marketing spend signals little organic demand and traction for its platform
EverQuote’s stock price of $25 implies a valuation ratio of 10.8x forward EV/EBITDA. Read our free research report to see why you should think twice about including EVER in your portfolio.
Integra LifeSciences (IART)
Rolling One-Year Beta: 1.71
Founded in 1989 as a pioneer in regenerative medicine technology, Integra LifeSciences (NASDAQ: IART) develops and manufactures medical technologies for neurosurgery, wound care, and surgical reconstruction, including regenerative tissue products and surgical instruments.
Why Are We Out on IART?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 7.7 percentage points
- 21 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
At $12.31 per share, Integra LifeSciences trades at 5.1x forward P/E. To fully understand why you should be careful with IART, check out our full research report (it’s free).
One Stock to Buy:
Pure Storage (PSTG)
Rolling One-Year Beta: 2.08
Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE: PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.
Why Should You Buy PSTG?
- ARR trends over the past two years show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 29.5% over the last five years outstripped its revenue performance
- Robust free cash flow margin of 17% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety
Pure Storage is trading at $56.98 per share, or 31.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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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