2 Volatile Stocks to Research Further and 1 We Find Risky

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.

These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here are two volatile stocks with massive upside potential and one that could just as easily collapse.

One Stock to Sell:

Fastly (FSLY)

Rolling One-Year Beta: 2.05

Taking its name from the core advantage it delivers to customers, Fastly (NYSE:FSLY) operates an edge cloud platform that processes, secures, and delivers web content as close to end users as possible, enabling faster digital experiences.

Why Do We Think FSLY Will Underperform?

1. Net revenue retention rate of 103% trails the industry benchmark of 110%+ and shows it has a tough time increasing customer spending
2. Sky-high servicing costs result in an inferior gross margin of 53.9% that must be offset through increased usage
3. Suboptimal cost structure is highlighted by its history of operating margin losses

At $8.74 per share, Fastly trades at 2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than FSLY.

Two Stocks to Watch:

LegalZoom (LZ)

Rolling One-Year Beta: 1.08

Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ:LZ) offers online legal services and documentation assistance for individuals and businesses.

Why Does LZ Stand Out?

1. Subscription Units have increased by an average of 11.7% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
2. Share repurchases over the last three years enabled its annual earnings per share growth of 177% to outpace its revenue gains
3. Free cash flow margin increased by 14.9 percentage points over the last few years, giving the company more capital to invest or return to shareholders

LegalZoom’s stock price of $10.03 implies a valuation ratio of 10.2x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

PJT (PJT)

Rolling One-Year Beta: 1.27

Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners (NYSE:PJT) is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.

Why Does PJT Catch Our Eye?

1. Annual revenue growth of 18.5% over the last two years was superb and indicates its market share increased during this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 23.2% outpaced its revenue gains
3. Industry-leading 27.3% return on equity demonstrates management’s skill in finding high-return investments

PJT is trading at $171.69 per share, or 25.7x forward P/E. Is now the right time to buy? Find out in our full 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 Strong Momentum Stocks for this week. 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 Tecnoglass (+1,754% 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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