2 Volatile Stocks for Long-Term Investors and 1 Facing Challenges
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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here are two volatile stocks with massive upside potential and one that could just as easily collapse.
One Stock to Sell:
Baxter (BAX)
Rolling One-Year Beta: 1.45
With a history dating back to 1931 and products used in over 100 countries, Baxter International (NYSE:BAX) provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide.
Why Should You Sell BAX?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 8.5% annually, worse than its revenue
- Negative returns on capital show that some of its growth strategies have backfired
At $23.84 per share, Baxter trades at 11.2x forward P/E. Check out our free in-depth research report to learn more about why BAX doesn’t pass our bar.
Two Stocks to Buy:
Remitly (RELY)
Rolling One-Year Beta: 2.41
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Do We Love RELY?
- Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 25.8% annually over the last two years
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 163% outpaced its revenue gains
- Free cash flow margin expanded by 43.1 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Remitly’s stock price of $20.35 implies a valuation ratio of 9x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Nubank (NU)
Rolling One-Year Beta: 1.12
With well over one hundred million customers across Brazil, Mexico, and Colombia through its viral member-get-member referral program, Nubank (NYSE:NU) is a digital banking platform that offers financial services including spending, saving, investing, borrowing, and protection products to millions of customers across Latin America.
Why Are We Bullish on NU?
- Annual revenue growth of 41.1% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 48.7% annually, topping its revenue gains
- ROE punches in at 15.9%, illustrating management’s expertise in identifying profitable investments
Nubank is trading at $13.70 per share, or 14.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.