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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here are two volatile stocks that could deliver huge gains and one best left to the gamblers.
One Stock to Sell:
Adobe (ADBE)
Rolling One-Year Beta: 1.11
Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ: ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms.
Why Are We Hesitant About ADBE?
- Average billings growth of 11.6% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Estimated sales growth of 9% for the next 12 months implies demand will slow from its two-year trend
- Operating margin improvement of 5.1 percentage points over the last year demonstrates its ability to scale efficiently
At $333.56 per share, Adobe trades at 5.6x forward price-to-sales. Check out our free in-depth research report to learn more about why ADBE doesn’t pass our bar.
Two Stocks to Watch:
Meta (META)
Rolling One-Year Beta: 1.39
Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.
Why Are We Backing META?
- 14.8% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 40.1% exceeded its revenue gains over the last three years
- Strong free cash flow margin of 26.9% enables it to reinvest or return capital consistently
Meta’s stock price of $627 implies a valuation ratio of 12.2x forward EV/EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Zions Bancorporation (ZION)
Rolling One-Year Beta: 1.42
Founded in 1873 during Utah's pioneer era and named after Mount Zion in the Bible, Zions Bancorporation (NASDAQ: ZION) operates seven regional banks across the Western United States, providing commercial, retail, and wealth management services to over a million customers.
Why Do We Like ZION?
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Impressive 22.5% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle
- Industry-leading 14% return on equity demonstrates management’s skill in finding high-return investments
Zions Bancorporation is trading at $52.67 per share, or 1.1x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 Comfort Systems (+782% 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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