1 Volatile Stock with Exciting Potential and 2 We Avoid

September 04, 2025 at 00:36 AM EDT

TXN Cover Image

Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.

These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here is one volatile stock that could reward patient investors and two best left to the gamblers.

Two Stocks to Sell:

Texas Instruments (TXN)

Rolling One-Year Beta: 1.14

Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ: TXN) is the world’s largest producer of analog semiconductors.

Why Does TXN Worry Us?

Annual sales declines of 5.9% for the past two years show its products and services struggled to connect with the market during this cycle
Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 11.4 percentage points
Free cash flow margin dropped by 29.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $195.95 per share, Texas Instruments trades at 32.2x forward P/E. To fully understand why you should be careful with TXN, check out our full research report (it’s free).

Tandem Diabetes (TNDM)

Rolling One-Year Beta: 1.22

With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ: TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels.

Why Do We Pass on TNDM?

Disappointing pump shipments over the past two years suggest it might have to lower prices to accelerate growth
Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 21% annually
Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Tandem Diabetes’s stock price of $12.35 implies a valuation ratio of 15.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why TNDM doesn’t pass our bar.

One Stock to Buy:

Customers Bancorp (CUBI)

Rolling One-Year Beta: 1.56

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Why Will CUBI Beat the Market?

Annual net interest income growth of 14.7% over the last five years was superb and indicates its market share increased during this cycle
Incremental sales significantly boosted profitability as its annual earnings per share growth of 20.7% over the last five years outstripped its revenue performance
Impressive 18% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle

Customers Bancorp is trading at $72.43 per share, or 1.2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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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