Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
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 two volatile stocks that could deliver huge gains and one best left to the gamblers.
One Stock to Sell:
Warner Bros. Discovery (WBD)
Rolling One-Year Beta: 1.68
Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ: WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.
Why Should You Sell WBD?
- Products and services have few die-hard fans as sales have declined by 5.1% annually over the last two years
- Earnings per share fell by 32.2% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $22.59 per share, Warner Bros. Discovery trades at 6.5x forward EV-to-EBITDA. If you’re considering WBD for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Zeta Global (ZETA)
Rolling One-Year Beta: 2.82
Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE: ZETA) operates a data-driven cloud platform that helps companies target, connect, and engage with consumers through personalized marketing across channels like email, social media, and video.
Why Is ZETA a Top Pick?
- Average billings growth of 36.4% over the last year enhances its liquidity and shows there is steady demand for its products
- Estimated revenue growth of 19% for the next 12 months implies its momentum over the last two years will continue
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Zeta Global is trading at $19.68 per share, or 3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
DXP (DXPE)
Rolling One-Year Beta: 1.90
Founded during the emergence of Big Oil in Texas, DXP (NASDAQ: DXPE) provides pumps, valves, and other industrial components.
Why Is DXPE a Good Business?
- Market share has increased this cycle as its 13% annual revenue growth over the last five years was exceptional
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 27.4% exceeded its revenue gains over the last two years
DXP’s stock price of $101.75 implies a valuation ratio of 16.3x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-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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