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 reward patient investors and one best left to the gamblers.
One Stock to Sell:
IAC (IAC)
Rolling One-Year Beta: 1.19
Originally known as InterActiveCorp and built through Barry Diller's strategic acquisitions since the 1990s, IAC (NASDAQ: IAC) operates a portfolio of category-leading digital businesses including Dotdash Meredith, Angi, and Care.com, focusing on digital publishing, home services, and caregiving platforms.
Why Do We Think IAC Will Underperform?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Sales over the last five years were less profitable as its earnings per share fell by 19.1% annually while its revenue was flat
- Push for growth has led to negative returns on capital, signaling value destruction
IAC is trading at $36.53 per share, or 20.6x forward P/E. If you’re considering IAC for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
DoorDash (DASH)
Rolling One-Year Beta: 1.63
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE: DASH) operates an on-demand food delivery platform.
Why Do We Love DASH?
- Orders are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Additional sales over the last three years increased its profitability as the 931% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 13 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
At $176.07 per share, DoorDash trades at 20.6x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Zeta Global (ZETA)
Rolling One-Year Beta: 2.48
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 Good Business?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 36.4% over the last year
- Expected revenue growth of 31.7% for the next year suggests its market share will rise
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Zeta Global’s stock price of $15.76 implies a valuation ratio of 2.2x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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.
