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 are two volatile stocks that could deliver huge gains and one that might not be worth the risk.
One stock to sell:
Teladoc (TDOC)
Rolling one-year beta: 1.73
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE: TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Why Does TDOC Fall Short?
- Annual revenue declines of 1.5% over the last three years indicate problems with its market positioning
- Customer spending has dipped by 9.7% on average as it focused on growing its users
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
At $9.61 per share, Teladoc trades at 9.2x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than TDOC.
Two stocks to watch:
Pinterest (PINS)
Rolling one-year beta: 1.32
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Why Are We Bullish on PINS?
- Has the opportunity to boost monetization through new features and premium offerings as its monthly active users have grown by 10.9% annually over the last two years
- Share buybacks catapulted its annual earnings per share growth to 28.6%, which outperformed its revenue gains over the last three years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
Pinterest’s stock price of $21.22 implies a valuation ratio of 7.6x forward EV/EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.
Benchmark (BHE)
Rolling one-year beta: 1.16
Operating as a critical behind-the-scenes partner for complex technology products since 1979, Benchmark Electronics (NYSE: BHE) provides advanced manufacturing, engineering, and technology solutions for original equipment manufacturers across aerospace, medical, industrial, and technology sectors.
Why Are We Fans of BHE?
- Estimated revenue growth of 11.9% for the next 12 months implies demand will accelerate from its two-year trend
- Additional sales over the last five years increased its profitability as the 18.9% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 10.2 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Benchmark is trading at $65.24 per share, or 20.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks we like even more
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
