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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here is one volatile stock that could deliver huge gains and two that might not be worth the risk.
Two Stocks to Sell:
Offerpad (OPAD)
Rolling One-Year Beta: 4.19
Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.
Why Do We Think OPAD Will Underperform?
- Demand for its offerings was relatively low as its number of homes sold has underwhelmed
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- EBITDA losses may force it to accept punitive lending terms or high-cost debt
Offerpad is trading at $2.53 per share, or 0x forward price-to-sales. Read our free research report to see why you should think twice about including OPAD in your portfolio.
Resideo (REZI)
Rolling One-Year Beta: 1.40
Resideo Technologies, Inc. (NYSE: REZI) is a manufacturer and distributor of technology-driven products and solutions for home comfort, energy management, water management, and safety and security.
Why Is REZI Risky?
- Annual revenue growth of 5.8% over the last five years was below our standards for the industrials sector
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 20.6 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
At $16.60 per share, Resideo trades at 9.1x forward P/E. If you’re considering REZI for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
StoneX (SNEX)
Rolling One-Year Beta: 1.16
Originally known as INTL FCStone until its 2020 rebranding, StoneX Group (NASDAQ:SNEX) provides a global financial services network connecting companies, traders, and investors to markets through clearing, execution, and advisory services.
Why Are We Bullish on SNEX?
- Annual revenue growth of 36% over the last two years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 40% annual growth in its earnings per share outpaced its revenue
- Annual tangible book value per share growth of 17.1% over the past five years was outstanding, reflecting strong capital accumulation this cycle
StoneX’s stock price of $56.32 implies a valuation ratio of 2.3x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.