1 Volatile Stock on Our Buy List and 2 to Ignore

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 that could deliver huge gains and two best left to the gamblers.

Two Stocks to Sell:

Floor And Decor (FND)

Rolling One-Year Beta: 1.11

Operating large, warehouse-style stores, Floor & Decor (NYSE:FND) is a specialty retailer that specializes in hard flooring surfaces for the home such as tiles, hardwood, stone, and laminates.

Why Does FND Worry Us?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. Smaller revenue base of $4.52 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Underwhelming 9.1% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam

At $79.22 per share, Floor And Decor trades at 37.8x forward P/E. If you’re considering FND for your portfolio, see our FREE research report to learn more.

Zevia (ZVIA)

Rolling One-Year Beta: 1.15

With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company.

Why Does ZVIA Give Us Pause?

1. 2% annual revenue growth over the last three years was slower than its consumer staples peers
2. Revenue growth over the past three years was nullified by the company’s new share issuances as its earnings per share fell by 27.1% annually
3. Cash-burning history makes us doubt the long-term viability of its business model

Zevia’s stock price of $2.97 implies a valuation ratio of 1.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ZVIA.

One Stock to Buy:

Cloudflare (NET)

Rolling One-Year Beta: 1.74

Founded by two grad students of Harvard Business School, Cloudflare (NYSE:NET) is a software-as-a-service platform that helps improve the security, reliability, and loading times of internet applications.

Why Are We Bullish on NET?

1. Billings have averaged 27.9% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. Expected revenue growth of 25.4% for the next year suggests its market share will rise
3. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs

Cloudflare is trading at $156.03 per share, or 24.5x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

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.