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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here are two volatile stocks that could reward patient investors and one that could just as easily collapse.
One Stock to Sell:
Estée Lauder (EL)
Rolling One-Year Beta: 1.46
Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE: EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming.
Why Are We Hesitant About EL?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Issuance of new shares over the last three years caused its earnings per share to fall by 28% annually, even worse than its revenue declines
At $108.20 per share, Estée Lauder trades at 40.8x forward P/E. Dive into our free research report to see why there are better opportunities than EL.
Two Stocks to Watch:
Upstart (UPST)
Rolling One-Year Beta: 2.90
Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ: UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.
Why Could UPST Be a Winner?
- Loan originations on its platform are soaring as they averaged 51.6% growth over the last year, enabling the company to collect more fees and expand into new markets like credit cards.
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Operating margin improvement of 31.2 percentage points over the last year demonstrates its ability to scale efficiently
Upstart is trading at $30.91 per share, or 2.4x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Synchrony Financial (SYF)
Rolling One-Year Beta: 1.59
Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE: SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.
Why Are We Bullish on SYF?
- Share buybacks catapulted its annual earnings per share growth to 33%, which outperformed its revenue gains over the last two years
- Impressive 17.4% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
- Industry-leading 22.8% return on equity demonstrates management’s skill in finding high-return investments
Synchrony Financial’s stock price of $70.07 implies a valuation ratio of 7.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
