A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south. While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
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 could just as easily collapse.
Two Stocks to Sell:
Lindblad Expeditions (LIND)
Rolling One-Year Beta: 1.99
Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ: LIND) offers cruising experiences to remote destinations in partnership with National Geographic.
Why Is LIND Risky?
- Lackluster 14.9% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 29.7% annually while its revenue grew
- Negative returns on capital show management lost money while trying to expand the business
At $11.62 per share, Lindblad Expeditions trades at 5.6x forward EV-to-EBITDA. If you’re considering LIND for your portfolio, see our FREE research report to learn more.
Tesla (TSLA)
Rolling One-Year Beta: 1.95
Originally founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla (NASDAQ: TSLA) is an electric vehicle company accelerating the world’s transition to sustainable energy.
Why Does TSLA Fall Short?
- Tesla's scale advantage in EV production leads to gross margins that exceed incumbents such as General Motors and Ford. However, a softer macroeconomic backdrop and tariff pressures have weighed on automobile sales, which are highly cyclical.
- The company's execution ability is a question mark given its long history of delays, such as the Cybertruck and Robotaxi launches. Its sizeable investments in projects with uncertain return timelines, like Optimus, also raise skepticism from investors.
- On the bright side, Tesla's Megapack product solves a critical problem for utilities needing renewable energy storage solutions. This innovation has made the energy segment the most profitable and fastest-growing business line for the company.
Tesla’s stock price of $311.19 implies a valuation ratio of 121.6x forward price-to-earnings. To fully understand why you should be careful with TSLA, check out our full research report (it’s free).
One Stock to Watch:
Snowflake (SNOW)
Rolling One-Year Beta: 1.42
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE: SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Why Is SNOW Interesting?
- Billings growth has averaged 26.5% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Platform plays a pivotal role in customer workflows as its net revenue retention rate punches in at 126%
- Market share will likely rise over the next 12 months as its expected revenue growth of 24.4% is robust
Snowflake is trading at $223.13 per share, or 15.6x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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-micro-cap company Kadant (+351% 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
