2 Volatile Stocks with Promising Prospects and 1 to Approach with Caution
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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here are two volatile stocks with massive upside potential and one that might not be worth the risk.
Rolling One-Year Beta: 1.20
Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE:RSI) is an operator of digital gaming platforms.
Why Does RSI Give Us Pause?
Subpar operating margin of 0.5% constrains its ability to invest in process improvements or effectively respond to new competitive threats
Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 8.8% for the last two years
At $13.82 per share, Rush Street Interactive trades at 42.3x forward P/E. If you're considering RSI for your portfolio, see our FREE research report to learn more.
Rolling One-Year Beta: 1.89
Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.
Why Does CFLT Stand Out?
Winning new contracts that can potentially increase in value as its billings growth has averaged 27.9% over the last year
Forecasted revenue growth of 17.4% for the next 12 months indicates its momentum over the last three years is sustainable
Healthy unit economics are reflected in its 73.9% gross margin and give it more money to invest in marketing and R&D
Confluent is trading at $24.44 per share, or 6.9x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it's free.
Rolling One-Year Beta: 2.53
Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Why Will COIN Beat the Market?
Customers are spending more money on its platform as its average revenue per user has increased by 58.2% annually over the last two years
Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 64.5% outpaced its revenue gains
Robust free cash flow margin of 25.9% gives it many options for capital deployment, and its improved cash conversion implies it's becoming a less capital-intensive business
Coinbase's stock price of $240.03 implies a valuation ratio of 18.7x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it's free.
The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking 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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