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 deliver huge gains and one best left to the gamblers.
One Stock to Sell:
C3.ai (AI)
Rolling One-Year Beta: 1.89
Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE: AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.
Why Are We Wary of AI?
- Annual revenue growth of 15.5% over the last three years was below our standards for the software sector
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
- Suboptimal cost structure is highlighted by its history of operating margin losses
C3.ai’s stock price of $24.20 implies a valuation ratio of 7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than AI.
Two Stocks to Watch:
Booking (BKNG)
Rolling One-Year Beta: 1.11
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Why Is BKNG a Top Pick?
- Has the opportunity to boost monetization through new features and premium offerings as its room nights booked have grown by 9.7% annually over the last two years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 51.8% exceeded its revenue gains over the last three years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $5,344 per share, Booking trades at 19.3x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Vita Coco (COCO)
Rolling One-Year Beta: 1.08
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.
Why Should COCO Be on Your Watchlist?
- Products are flying off the shelves as its unit sales averaged 8.4% growth over the past two years
- Earnings per share grew by 133% annually over the last three years, massively outpacing its peers
- Industry-leading 33.4% return on capital demonstrates management’s skill in finding high-return investments, and its rising returns show it’s making even more lucrative bets
Vita Coco is trading at $33 per share, or 27.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. 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
