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 deliver huge gains and two that might not be worth the risk.
Two SoftwareStocks to Sell:
Upstart (UPST)
Rolling One-Year Beta: 3.94
Founded by the former head of Google's enterprise business, Upstart (NASDAQ: UPST) is an AI-powered lending platform facilitating loans for banks and consumers.
Why Does UPST Fall Short?
- Sales tumbled by 11.4% annually over the last three years, showing industry trends like AI are working against its favor
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- High net-debt-to-EBITDA ratio of 8× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Upstart’s stock price of $51.30 implies a valuation ratio of 4.5x forward price-to-sales. Read our free research report to see why you should think twice about including UPST in your portfolio.
Commvault Systems (CVLT)
Rolling One-Year Beta: 1.36
Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance.
Why Are We Wary of CVLT?
- Sales trends were unexciting over the last three years as its 9% annual growth was well below the typical software company
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 1.6 percentage points
Commvault Systems is trading at $186.99 per share, or 7.5x forward price-to-sales. If you’re considering CVLT for your portfolio, see our FREE research report to learn more.
One Software Stock to Watch:
Integral Ad Science (IAS)
Rolling One-Year Beta: 1.11
Founded in 2009, Integral Ad Science (NASDAQ: IAS) provides digital advertising verification and optimization solutions, ensuring that ads are viewable by real people in brand-safe environments across various platforms and devices.
Why Do We Like IAS?
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Operating margin improvement of 11.3 percentage points over the last year demonstrates its ability to scale efficiently
- Robust free cash flow margin of 22.1% gives it many options for capital deployment
At $8.24 per share, Integral Ad Science trades at 2.3x 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
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
