1 Volatile Stock with Promising Prospects and 2 We Avoid
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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here is one volatile stock with massive upside potential and two that could just as easily collapse.
Two Stocks to Sell:
Zoom (ZM)
Rolling One-Year Beta: 1.21
Once the verb that defined remote work during the pandemic ("let's Zoom later"), Zoom (NASDAQ:ZM) provides a cloud-based platform for video meetings, phone calls, team chat, and collaboration tools that helps businesses and individuals connect virtually.
Why Should You Sell ZM?
- ARR growth averaged a weak 5% over the last year, suggesting that competition is pulling some attention away from its software
- Competitive market dynamics make it difficult to retain customers, leading to a weak 98.5% net revenue retention rate
- Projected sales growth of 3.9% for the next 12 months suggests sluggish demand
Zoom’s stock price of $88.55 implies a valuation ratio of 5x forward price-to-sales. To fully understand why you should be careful with ZM, check out our full research report (it’s free).
Coupang (CPNG)
Rolling One-Year Beta: 1.77
Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".
Why Is CPNG Not Exciting?
- Modest 7.2% annual growth in active customers over the last two years indicates potential challenges in customer acquisition and retention
- High servicing costs result in an inferior gross margin of 28.9% that must be offset through higher volumes
- Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 41.4% annually
At $13.92 per share, Coupang trades at 16.1x forward EV/EBITDA. Read our free research report to see why you should think twice about including CPNG in your portfolio.
One Stock to Watch:
Waters Corporation (WAT)
Rolling One-Year Beta: 1.31
Founded in 1958 and pioneering innovations in laboratory analysis for over six decades, Waters (NYSE:WAT) develops and manufactures analytical instruments, software, and consumables for liquid chromatography, mass spectrometry, and thermal analysis used in scientific research and quality testing.
Why Does WAT Stand Out?
- Exciting sales outlook for the upcoming 12 months calls for 48.6% growth, an acceleration from its two-year trend
- Has the option to reinvest or return capital to investors as its 14.9% free cash flow margin is well above its peers
- Industry-leading 27.5% return on capital demonstrates management’s skill in finding high-return investments
Waters Corporation is trading at $443.32 per share, or 28.5x forward P/E. Is now the time to initiate a position? Find out in our full 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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.