1 Volatile Stock with Solid Fundamentals and 2 to Be Wary Of

Yahoo

24-06-2025

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 is one volatile stock with massive upside potential and two best left to the gamblers.
Rolling One-Year Beta: 1.32
Founded in Sydney, Australia in 2009 by Mitchell Harper and Eddie Machaalani, BigCommerce (NASDAQ:BIGC) provides software for businesses to easily create online stores.
Why Do We Pass on BIGC?
ARR growth averaged a weak 4% over the last year, suggesting that competition is pulling some attention away from its software
Estimated sales growth of 3.7% for the next 12 months implies demand will slow from its three-year trend
Suboptimal cost structure is highlighted by its history of operating margin losses
At $4.81 per share, BigCommerce trades at 1.1x forward price-to-sales. To fully understand why you should be careful with BIGC, check out our full research report (it's free).
Rolling One-Year Beta: 1.12
Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap (NYSE:GAP) is an apparel and accessories retailer selling casual clothing to men, women, and children.
Why Are We Wary of GAP?
Disappointing same-store sales over the past two years show customers aren't responding well to its product selection and store experience
Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 1.3%
Low returns on capital reflect management's struggle to allocate funds effectively
Gap's stock price of $21.55 implies a valuation ratio of 9.1x forward P/E. Read our free research report to see why you should think twice about including GAP in your portfolio, it's free.
Rolling One-Year Beta: 1.30
Founded in 2011 after the co-founders met at NYC Disrupt Hackathon, Braze (NASDAQ:BRZE) is a customer engagement software platform that allows brands to connect with customers through data-driven and contextual marketing campaigns.
Why Are We Fans of BRZE?
Ability to secure long-term commitments with customers is evident in its 23.1% ARR growth over the last year
Forecasted revenue growth of 18.5% for the next 12 months indicates its momentum over the last three years is sustainable
Operating margin improvement of 8.5 percentage points over the last year demonstrates its ability to scale efficiently
Braze is trading at $26.02 per share, or 3.7x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it's free.
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 Exlservice (+354% 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