2 Volatile Stocks with Competitive Advantages and 1 We Ignore

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. Keeping that in mind, here are two volatile stocks that could reward patient investors and one that could just as easily collapse.

One Stock to Sell:

CBRE (CBRE)

Rolling One-Year Beta: 1.05

Established in 1906, CBRE (NYSE:CBRE) is one of the largest commercial real estate services firms in the world.

Why Do We Avoid CBRE?

1. Annual sales growth of 10.3% over the last five years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $169.38 per share, CBRE trades at 24.1x forward P/E. Dive into our free research report to see why there are better opportunities than CBRE.

Two Stocks to Watch:

Doximity (DOCS)

Rolling One-Year Beta: 1.20

With over 80% of U.S. physicians as members of its digital community, Doximity (NYSE:DOCS) operates a digital platform that enables physicians and other healthcare professionals to collaborate, stay current with medical news, manage their careers, and conduct virtual patient visits.

Why Are We Bullish on DOCS?

1. Average billings growth of 20.1% over the last year enhances its liquidity and shows there is steady demand for its products
2. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
3. Strong free cash flow margin of 50.2% enables it to reinvest or return capital consistently

Doximity is trading at $39.08 per share, or 12x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.

Cadence Design Systems (CDNS)

Rolling One-Year Beta: 1.27

Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ:CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.

Why Are We Positive On CDNS?

1. Billings growth has averaged 21.8% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
2. Software is difficult to replicate at scale and results in a best-in-class gross margin of 86.6%
3. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs

Cadence Design Systems’s stock price of $319.06 implies a valuation ratio of 15.3x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.