Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here are two volatile stocks that could reward patient investors and one best left to the gamblers.
One Stock to Sell:
Elanco (ELAN)
Rolling One-Year Beta: 1.36
Originally established as a division of pharmaceutical giant Eli Lilly before becoming independent in 2018, Elanco Animal Health (NYSE:ELAN) develops and sells medications, vaccines, and other health products for pets and farm animals across more than 90 countries.
Why Does ELAN Give Us Pause?
- 2.5% annual revenue growth over the last two years was slower than its healthcare peers
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Push for growth has led to negative returns on capital, signaling value destruction
Elanco is trading at $22.48 per share, or 23.4x forward P/E. Check out our free in-depth research report to learn more about why ELAN doesn’t pass our bar.
Two Stocks to Buy:
Coinbase (COIN)
Rolling One-Year Beta: 2.82
Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Why Will COIN Beat the Market?
- Monthly Transacting Users have grown by 11.7% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Platform’s growing usage and its ability to increase user spending by 55% annually showcases its high switching costs
- Earnings per share have massively outperformed its peers over the last two years, increasing by 132% annually
At $318.99 per share, Coinbase trades at 26.9x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
DexCom (DXCM)
Rolling One-Year Beta: 1.24
Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ:DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.
Why Should You Buy DXCM?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 16.8% over the past two years
- Earnings per share grew by 17.5% annually over the last five years and trumped its peers
- Free cash flow margin increased by 17.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
DexCom’s stock price of $55.50 implies a valuation ratio of 23x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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-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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.