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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here are three volatile stocks best left to the gamblers and some better opportunities instead.
ThredUp (TDUP)
Rolling One-Year Beta: 3.36
Founded to revolutionize thrifting, ThredUp (NASDAQ: TDUP) is a leading online fashion resale marketplace offering a wide selection of gently-used clothing and accessories.
Why Are We Cautious About TDUP?
- Performance surrounding its orders has lagged its peers
- Historical operating margin losses point to an inefficient cost structure
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
At $8.89 per share, ThredUp trades at 77.7x forward EV-to-EBITDA. To fully understand why you should be careful with TDUP, check out our full research report (it’s free for active Edge members).
Tapestry (TPR)
Rolling One-Year Beta: 1.14
Originally founded as Coach, Tapestry (NYSE: TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.
Why Do We Think Twice About TPR?
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Anticipated sales growth of 3.1% for the next year implies demand will be shaky
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Tapestry is trading at $115.26 per share, or 21.1x forward P/E. Read our free research report to see why you should think twice about including TPR in your portfolio.
Seacoast Banking (SBCF)
Rolling One-Year Beta: 1.08
Founded during the Florida land boom of 1926 and surviving the Great Depression, Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is a financial holding company that provides commercial and retail banking, wealth management, and mortgage services throughout Florida.
Why Are We Wary of SBCF?
- Sales trends were unexciting over the last two years as its 1% annual growth was below the typical banking company
- Muted 2.8% annual tangible book value per share growth over the last five years shows its capital generation lagged behind its banking peers
- Forecasted tangible book value per share decline of 5.8% for the upcoming 12 months implies profitability will deteriorate significantly
Seacoast Banking’s stock price of $31.72 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why SBCF doesn’t pass our bar.
Stocks We Like More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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