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 three volatile stocks best left to the gamblers and some better opportunities instead.
Dayforce (DAY)
Rolling One-Year Beta: 1.29
Rebranded from Ceridian in January 2024 to highlight its flagship product, Dayforce (NYSE:DAY) provides cloud-based software that helps organizations manage their entire employee lifecycle, including HR, payroll, workforce management, benefits, and talent development.
Why Do We Think Twice About DAY?
- Products, pricing, or go-to-market strategy may need some adjustments as its 12% average billings growth over the last year was weak
- Bad unit economics and steep infrastructure costs are reflected in its gross margin of 50.9%, one of the worst among software companies
- Operating margin failed to increase over the last year, indicating the company couldn’t optimize its expenses
Dayforce is trading at $68.58 per share, or 5.2x forward price-to-sales. Check out our free in-depth research report to learn more about why DAY doesn’t pass our bar.
Coursera (COUR)
Rolling One-Year Beta: 1.41
Founded by two Stanford University computer science professors, Coursera (NYSE:COUR) is an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world.
Why Does COUR Give Us Pause?
- Customer spending has dipped by 7.3% on average as it focused on growing its customers
- Estimated sales growth of 6% for the next 12 months implies demand will slow from its three-year trend
- Excessive marketing spend signals little organic demand and traction for its platform
At $8.02 per share, Coursera trades at 19.6x forward EV/EBITDA. To fully understand why you should be careful with COUR, check out our full research report (it’s free for active Edge members).
NeoGenomics (NEO)
Rolling One-Year Beta: 1.45
Operating a network of CAP-accredited and CLIA-certified laboratories across the United States and United Kingdom, NeoGenomics (NASDAQ:NEO) provides specialized cancer diagnostic testing services, including genetic analysis, molecular testing, and pathology consultation for oncologists and healthcare providers.
Why Are We Out on NEO?
- Modest revenue base of $709.2 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Negative returns on capital show management lost money while trying to expand the business
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
NeoGenomics’s stock price of $10.44 implies a valuation ratio of 66.7x forward P/E. Dive into our free research report to see why there are better opportunities than NEO.
Stocks We Like More
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 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% 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
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