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 that could reward patient investors and one best left to the gamblers.
One Stock to Sell:
Ingram Micro (INGM)
Rolling One-Year Beta: 1.35
Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE: INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.
Why Does INGM Fall Short?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.2% over the last five years was below our standards for the business services sector
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 7.8% annually
- Low free cash flow margin of -0.1% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Ingram Micro is trading at $21.34 per share, or 6.8x forward P/E. To fully understand why you should be careful with INGM, check out our full research report (it’s free).
Two Stocks to Watch:
Atlassian (TEAM)
Rolling One-Year Beta: 1.60
Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ: TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.
Why Do We Like TEAM?
- Annual revenue growth of 21.4% over the last two years was superb and indicates its market share is rising
- Prominent and differentiated software leads to a premier gross margin of 83.5%
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
At $120.42 per share, Atlassian trades at 5.4x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Cadence Design Systems (CDNS)
Rolling One-Year Beta: 1.27
Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ: CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.
Why Are We Fans of CDNS?
- Billings have averaged 21.8% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Superior software functionality and low servicing costs are reflected in its best-in-class gross margin of 86.6%
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Cadence Design Systems’s stock price of $302.51 implies a valuation ratio of 15.2x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.
