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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here is one volatile stock with massive upside potential and two that could just as easily collapse.
Two Stocks to Sell:
Opendoor (OPEN)
Rolling One-Year Beta: 2.11
Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.
Why Do We Steer Clear of OPEN?
- Performance surrounding its homes purchased has lagged its peers
- Negative free cash flow raises questions about the return timeline for its investments
- Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes
Opendoor is trading at $7.86 per share, or 1.6x forward price-to-sales. If you’re considering OPEN for your portfolio, see our FREE research report to learn more.
IDEX (IEX)
Rolling One-Year Beta: 1.11
Founded in 1988, IDEX (NYSE:IEX) is a global manufacturer specializing in highly engineered products such as pumps, flow meters, and fluidics systems for various industries.
Why Should You Sell IEX?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 4% annually
- Diminishing returns on capital suggest its earlier profit pools are drying up
IDEX’s stock price of $162.82 implies a valuation ratio of 19.7x forward P/E. To fully understand why you should be careful with IEX, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Medpace (MEDP)
Rolling One-Year Beta: 1.12
Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ:MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.
Why Do We Watch MEDP?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 15.7% over the past two years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 36.7% exceeded its revenue gains over the last five years
- ROIC punches in at 44.1%, illustrating management’s expertise in identifying profitable investments
At $503.50 per share, Medpace trades at 34x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
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 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-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
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