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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. 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:
Synovus Financial (SNV)
Rolling One-Year Beta: 1.62
Tracing its roots back to 1888 when a worker accidentally dropped a textile mill payroll into the dust, prompting the need for better banking, Synovus Financial (NYSE:SNV) is a regional financial services company that provides commercial and consumer banking, wealth management, and specialized lending services across five southeastern states.
Why Is SNV Not Exciting?
- 4% annual net interest income growth over the last five years was slower than its banking peers
- Estimated net interest income growth of 5.6% for the next 12 months is soft and implies weaker demand
- Weak unit economics are reflected in its net interest margin of 3.2%, one of the worst among bank companies
Synovus Financial’s stock price of $48.68 implies a valuation ratio of 1.3x forward P/B. Check out our free in-depth research report to learn more about why SNV doesn’t pass our bar.
Two Stocks to Buy:
GitLab (GTLB)
Rolling One-Year Beta: 1.54
With its all-remote workforce pioneering a new approach to software development, GitLab (NASDAQ:GTLB) provides a single-application DevSecOps platform that helps development, operations, and security teams collaborate to build, secure, and deploy software faster.
Why Will GTLB Outperform?
- Customers view its software as mission-critical to their operations as its ARR has averaged 30.9% growth over the last year
- Prominent and differentiated software results in a best-in-class gross margin of 88.5%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
GitLab is trading at $47 per share, or 7.6x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
e.l.f. Beauty (ELF)
Rolling One-Year Beta: 1.81
Short for "eyes, lips, face", e.l.f. Beauty (NYSE:ELF) is a developer of high-quality beauty products at accessible price points.
Why Should You Buy ELF?
- Remarkable 47.6% revenue growth over the last three years demonstrates its ability to capture significant market share
- Earnings growth has trumped its peers over the last three years as its EPS has compounded at 48.6% annually
- Free cash flow margin increased by 6.5 percentage points over the last year, giving the company more capital to invest or return to shareholders
At $134.60 per share, e.l.f. Beauty trades at 34.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even 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 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.