2 Volatile Stocks with Exciting Potential and 1 We Turn Down
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. Keeping that in mind, here are two volatile stocks with massive upside potential and one that might not be worth the risk.
One Stock to Sell:
Peloton (PTON)
Rolling One-Year Beta: 1.57
Started as a Kickstarter campaign, Peloton (NASDAQ: PTON) is a fitness technology company known for its at-home exercise equipment and interactive online workout classes.
Why Do We Pass on PTON?
- Demand for its offerings was relatively low as its number of connected fitness subscribers has underwhelmed
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year
Peloton’s stock price of $4.82 implies a valuation ratio of 15.2x forward P/E. If you’re considering PTON for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Lam Research (LRCX)
Rolling One-Year Beta: 2.37
Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.
Why Should You Buy LRCX?
- Annual revenue growth of 24.8% over the past two years was outstanding, reflecting market share gains this cycle
- Healthy operating margin of 33.8% shows it’s a well-run company with efficient processes, and its operating leverage amplified its profits over the last five years
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its rising returns show it’s making even more lucrative bets
Lam Research is trading at $307.13 per share, or 32.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
QuinStreet (QNST)
Rolling One-Year Beta: 1.97
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Will QNST Outperform?
- Impressive 45.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Free cash flow margin expanded by 5.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital suggest its past investments are beginning to deliver value
At $14.25 per share, QuinStreet trades at 9.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.