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 are two volatile stocks that could deliver huge gains and one best left to the gamblers.
One Stock to Sell:
Pegasystems (PEGA)
Rolling One-Year Beta: 1.52
With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems (NASDAQ:PEGA) develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.
Why Are We Hesitant About PEGA?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 13.5% underwhelmed
- Estimated sales growth of 3.6% for the next 12 months implies demand will slow from its two-year trend
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
Pegasystems’s stock price of $55.25 implies a valuation ratio of 5.8x forward price-to-sales. Read our free research report to see why you should think twice about including PEGA in your portfolio.
Two Stocks to Watch:
Trupanion (TRUP)
Rolling One-Year Beta: 1.26
Born from a vision to help pet owners avoid economic euthanasia when faced with expensive veterinary bills, Trupanion (NASDAQ:TRUP) provides medical insurance for cats and dogs through data-driven, vertically-integrated products priced specifically for each pet's unique characteristics.
Why Does TRUP Catch Our Eye?
- Market share has increased this cycle as its 16.2% annual revenue growth over the last two years was exceptional
- Additional sales over the last two years increased its profitability as the 143% annual growth in its earnings per share outpaced its revenue
- Balance sheet strength has increased this cycle as its 15.5% annual book value per share growth over the last five years was exceptional
At $42.30 per share, Trupanion trades at 4.9x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
JPMorgan Chase (JPM)
Rolling One-Year Beta: 1.36
Tracing its roots back to 1799 when its earliest predecessor was founded by Aaron Burr, JPMorgan Chase (NYSE:JPM) is a leading financial services company offering investment banking, consumer banking, commercial banking, and asset management services globally.
Why Is JPM Interesting?
- Solid 10.4% annual net interest income growth over the last five years indicates its offerings are gaining share
- Share buybacks catapulted its annual earnings per share growth to 11.2%, which outperformed its revenue gains over the last two years
- Annual tangible book value per share growth of 10.9% over the past five years was outstanding, reflecting strong capital accumulation this cycle
JPMorgan Chase is trading at $307.62 per share, or 2.5x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
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 6 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-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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