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. That said, here is one volatile stock that could reward patient investors and two that could just as easily collapse.
Two Stocks to Sell:
Teradyne (TER)
Rolling One-Year Beta: 1.80
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ: TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Why Are We Hesitant About TER?
- 3% annual revenue growth over the last five years was slower than its semiconductor peers
- Anticipated sales growth of 2.6% for the next year implies demand will be shaky
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 7.9 percentage points
Teradyne is trading at $94.50 per share, or 26x forward P/E. To fully understand why you should be careful with TER, check out our full research report (it’s free).
Nextdoor (KIND)
Rolling One-Year Beta: 1.35
Helping residents figure out what's happening on their block in real time, Nextdoor (NYSE: KIND) is a social network that connects neighbors with each other and with local businesses.
Why Do We Steer Clear of KIND?
- Focus on expanding its platform has led to weaker growth in its average revenue per user
- Suboptimal cost structure is highlighted by its history of EBITDA margin losses
- Cash-burning history makes us doubt the long-term viability of its business model
Nextdoor’s stock price of $1.89 implies a valuation ratio of 3.5x forward price-to-gross profit. Check out our free in-depth research report to learn more about why KIND doesn’t pass our bar.
One Stock to Buy:
Cloudflare (NET)
Rolling One-Year Beta: 1.85
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 Will NET Outperform?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 27.9% over the last year
- Expected revenue growth of 25.5% for the next year suggests its market share will rise
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
At $191.79 per share, Cloudflare trades at 29.7x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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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