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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here are two volatile stocks that could reward patient investors and one that could just as easily collapse.
One Stock to Sell:
Upstart (UPST)
Rolling One-Year Beta: 3.72
Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ: UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.
Why Is UPST Not Exciting?
- Annual sales declines of 7.4% for the past three years show its products and services struggled to connect with the market
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Upstart is trading at $68.79 per share, or 5.9x forward price-to-sales. Read our free research report to see why you should think twice about including UPST in your portfolio.
Two Stocks to Buy:
Nextracker (NXT)
Rolling One-Year Beta: 1.24
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextracker (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Will NXT Beat the Market?
- Backlog has averaged 41.7% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Free cash flow margin grew by 13.7 percentage points over the last five years, giving the company more chips to play with
- Improving returns on capital reflect management’s ability to monetize investments
Nextracker’s stock price of $67.70 implies a valuation ratio of 17.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
LPL Financial (LPLA)
Rolling One-Year Beta: 1.23
As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ: LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
Why Is LPLA a Top Pick?
- Annual revenue growth of 22.6% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales over the last five years have been more profitable as its earnings per share increased by 21.3% annually, topping its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $360.43 per share, LPL Financial trades at 17.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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-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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