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. That said, here are two volatile stocks that could deliver huge gains and one best left to the gamblers.
One Stock to Sell:
Steven Madden (SHOO)
Rolling One-Year Beta: 1.07
As seen in the infamous Wolf of Wall Street movie, Steven Madden (NASDAQ: SHOO) is a fashion brand famous for its trendy and innovative footwear, appealing to a young and style-conscious audience.
Why Are We Cautious About SHOO?
- Lackluster 5.7% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Earnings per share lagged its peers over the last five years as they only grew by 9.2% annually
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 2.6 percentage points
Steven Madden is trading at $26.25 per share, or 13.7x forward P/E. If you’re considering SHOO for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Shopify (SHOP)
Rolling One-Year Beta: 2.17
Originally created as an internal tool for a snowboarding company, Shopify (NYSE: SHOP) provides a software platform for building and operating e-commerce businesses.
Why Do We Love SHOP?
- Payment activity on its platform is soaring as its TPV growth averaged 31.9% over the last year, enabling the company to collect more fees and upsell additional services like banking
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Operating margin expanded by 28.1 percentage points over the last year as it scaled and became more efficient
Shopify’s stock price of $122.12 implies a valuation ratio of 13.9x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Planet Labs (PL)
Rolling One-Year Beta: 2.45
Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE: PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.
Why Could PL Be a Winner?
- Annual revenue growth of 21.3% over the past five years was outstanding, reflecting market share gains this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 27% outpaced its revenue gains
- Rising returns on capital show the company is starting to reap the benefits of its past investments
At $6.81 per share, Planet Labs trades at 7.2x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2024, 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 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 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
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