1 Volatile Stock with Competitive Advantages and 2 We Brush Off

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. Keeping that in mind, here is one volatile stock that could reward patient investors and two best left to the gamblers.

Two Stocks to Sell:

Frontdoor (FTDR)

Rolling One-Year Beta: 1.21

Established in 2018 as a spin-off from ServiceMaster Global Holdings, Frontdoor (NASDAQ:FTDR) is a provider of home warranty and service plans.

Why Does FTDR Worry Us?

1. Sales trends were unexciting over the last five years as its 6.8% annual growth was below the typical consumer discretionary company
2. Sluggish trends in its home service plans suggest customers aren’t adopting its solutions as quickly as the company hoped
3. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 8.6%

At $58.89 per share, Frontdoor trades at 16.3x forward P/E. Dive into our free research report to see why there are better opportunities than FTDR.

AGCO (AGCO)

Rolling One-Year Beta: 1.27

With a history that features both organic growth and acquisitions, AGCO (NYSE:AGCO) designs, manufactures, and sells agricultural machinery and related technology.

Why Do We Steer Clear of AGCO?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
3. Diminishing returns on capital suggest its earlier profit pools are drying up

AGCO is trading at $112.25 per share, or 22.2x forward P/E. Read our free research report to see why you should think twice about including AGCO in your portfolio.

One Stock to Watch:

Cadence Design Systems (CDNS)

Rolling One-Year Beta: 1.24

Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ:CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.

Why Should CDNS Be on Your Watchlist?

1. Winning new contracts that can potentially increase in value as its billings growth has averaged 25.5% over the last year
2. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
3. CDNS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Cadence Design Systems’s stock price of $350.20 implies a valuation ratio of 17.2x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, 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 9 Market-Beating Stocks. 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.