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. That said, here are three volatile stocks best left to the gamblers and some better opportunities instead.
DoubleVerify (DV)
Rolling One-Year Beta: 1.06
Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE:DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.
Why Is DV Not Exciting?
- Estimated sales growth of 9.3% for the next 12 months implies demand will slow from its two-year trend
- Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
- Operating margin fell by 1.8 percentage points over the last year as it prioritized growth over profits
At $11.50 per share, DoubleVerify trades at 2.4x forward price-to-sales. Read our free research report to see why you should think twice about including DV in your portfolio.
Perma-Fix (PESI)
Rolling One-Year Beta: 1.15
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ:PESI) provides environmental waste treatment services.
Why Should You Sell PESI?
- Annual sales declines of 9.4% for the past five years show its products and services struggled to connect with the market during this cycle
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Perma-Fix’s stock price of $12.85 implies a valuation ratio of 422.3x forward P/E. To fully understand why you should be careful with PESI, check out our full research report (it’s free for active Edge members).
T. Rowe Price (TROW)
Rolling One-Year Beta: 1.13
Founded in 1937 by Thomas Rowe Price Jr., who pioneered the growth stock investing approach, T. Rowe Price (NASDAQ:TROW) is an investment management firm that offers mutual funds, advisory services, and retirement planning solutions to individuals and institutions.
Why Are We Hesitant About TROW?
- Sales trends were unexciting over the last five years as its 4.2% annual growth was below the typical financials company
- Performance over the past five years shows its incremental sales were less profitable, as its 1.5% annual earnings per share growth trailed its revenue gains
T. Rowe Price is trading at $104.75 per share, or 10.2x forward P/E. Check out our free in-depth research report to learn more about why TROW doesn’t pass our bar.
Stocks We Like 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 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-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.