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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here are two volatile stocks that could deliver huge gains and one best left to the gamblers.
One Stock to Sell:
SmartRent (SMRT)
Rolling One-Year Beta: 1.30
Founded by an employee at a real estate rental company, SmartRent (NYSE:SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
Why Is SMRT Not Exciting?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 13.2% annually over the last two years
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Cash burn makes us question whether it can achieve sustainable long-term growth
At $1.40 per share, SmartRent trades at 1.7x forward price-to-sales. If you’re considering SMRT for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Dynatrace (DT)
Rolling One-Year Beta: 1.16
With its platform processing over 30 trillion pieces of IT performance data daily, Dynatrace (NYSE:DT) provides an AI-powered platform that helps organizations monitor, secure, and optimize their applications and IT infrastructure across cloud environments.
Why Are We Positive On DT?
- Average billings growth of 18.9% over the last year enhances its liquidity and shows there is steady demand for its products
- Prominent and differentiated software results in a top-tier gross margin of 81.9%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Dynatrace is trading at $48.33 per share, or 7.2x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stock Yards Bank (SYBT)
Rolling One-Year Beta: 1.14
Founded in 1904 in Louisville and named after the city's historic livestock market district, Stock Yards Bancorp (NASDAQ:SYBT) operates a regional bank providing commercial banking, wealth management, and trust services across Kentucky, Indiana, and Ohio.
Why Should SYBT Be on Your Watchlist?
- Annual net interest income growth of 16.9% over the past five years was outstanding, reflecting market share gains this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 6.7% over the last two years outstripped its revenue performance
- Exciting tangible book value per share outlook for the upcoming 12 months calls for 25.3% growth, an acceleration from its two-year trend
Stock Yards Bank’s stock price of $68.06 implies a valuation ratio of 1.9x 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
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-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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