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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here is one volatile stock that could deliver huge gains and two best left to the gamblers.
Two Stocks to Sell:
SoundHound AI (SOUN)
Rolling One-Year Beta: 2.76
Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ:SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.
Why Is SOUN Not Exciting?
- Sky-high servicing costs result in an inferior gross margin of 39.7% that must be offset through increased usage
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
- Negative free cash flow raises questions about the return timeline for its investments
SoundHound AI’s stock price of $11.90 implies a valuation ratio of 21.5x forward price-to-sales. Check out our free in-depth research report to learn more about why SOUN doesn’t pass our bar.
Flutter Entertainment (FLUT)
Rolling One-Year Beta: 1.34
With its digital fingerprints on nearly every aspect of global gambling, from the Super Bowl bettor to the online poker aficionado, Flutter Entertainment (NASDAQ:FLUT) operates a portfolio of leading online sports betting and gaming brands including FanDuel, PokerStars, Paddy Power, and Sky Betting & Gaming.
Why Are We Out on FLUT?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 16.8% for the last two years
- Free cash flow margin is expected to remain in place over the coming year
- Rising returns on capital show management is making relatively better investments
At $213.85 per share, Flutter Entertainment trades at 27.8x forward P/E. Read our free research report to see why you should think twice about including FLUT in your portfolio.
One Stock to Buy:
Snowflake (SNOW)
Rolling One-Year Beta: 1.38
Named after the unique architecture of its data warehouse which resembles a snowflake pattern, Snowflake (NYSE:SNOW) provides a cloud-based data platform that enables organizations to consolidate, analyze, and share data across multiple cloud providers.
Why Will SNOW Beat the Market?
- Average billings growth of 30.5% over the last year enhances its liquidity and shows there is steady demand for its products
- Expected revenue growth of 25.1% for the next year suggests its market share will rise
- Free cash flow margin is anticipated to expand by 8.1 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends
Snowflake is trading at $219.50 per share, or 13.9x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 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.