3 Volatile Stocks Walking a Fine Line

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.

At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here are three volatile stocks best left to the gamblers and some better opportunities instead.

Q2 Holdings (QTWO)

Rolling One-Year Beta: 1.63

With a platform powering digital services for approximately 25 million account holders across America, Q2 Holdings (NYSE:QTWO) provides cloud-based digital solutions that help financial institutions, fintechs, and alternative finance companies deliver modern banking experiences to their customers.

Why Are We Cautious About QTWO?

1. Customers were hesitant to make long-term commitments to its software as its 11.3% average ARR growth over the last year was sluggish
2. Estimated sales growth of 10.7% for the next 12 months implies demand will slow from its two-year trend
3. Gross margin of 53.4% reflects its high servicing costs

At $74.77 per share, Q2 Holdings trades at 6.1x forward price-to-sales. Check out our free in-depth research report to learn more about why QTWO doesn’t pass our bar.

Shutterstock (SSTK)

Rolling One-Year Beta: 1.28

Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.

Why Does SSTK Give Us Pause?

1. Customer spending has dipped by 18.6% on average as it focused on growing its requests
2. Sales are projected to tank by 1% over the next 12 months as demand evaporates
3. Performance over the past three years was negatively impacted by new share issuances as its earnings per share grew slower than its revenue

Shutterstock is trading at $18.31 per share, or 2.9x forward EV/EBITDA. If you’re considering SSTK for your portfolio, see our FREE research report to learn more.

GXO Logistics (GXO)

Rolling One-Year Beta: 1.15

With notable customers such as Nike and Apple, GXO (NYSE:GXO) manages outsourced supply chains and warehousing for various companies.

Why Are We Hesitant About GXO?

1. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
2. ROIC of 2.9% reflects management’s challenges in identifying attractive investment opportunities
3. 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

GXO Logistics’s stock price of $53.53 implies a valuation ratio of 18.4x forward P/E. Read our free research report to see why you should think twice about including GXO in your portfolio.

Stocks We Like More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.