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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here is one volatile stock that could deliver huge gains and two that might not be worth the risk.
Two Stocks to Sell:
Asana (ASAN)
Rolling One-Year Beta: 1.58
Founded in 2008 by Facebook’s co-founder Dustin Moskovitz, Asana (NYSE: ASAN) is a cloud-based project management software, where you can plan and assign tasks to employees and monitor and discuss progress of work.
Why Do We Think Twice About ASAN?
- Products, pricing, or go-to-market strategy may need some adjustments as its 4.3% average billings growth over the last year was weak
- Net revenue retention rate of 96.3% shows it has a tough time retaining customers
- Prolonged sales cycles signal certain parts of its software must be customized for its large enterprise clients, impeding customer growth
At $13.80 per share, Asana trades at 4.1x forward price-to-sales. Read our free research report to see why you should think twice about including ASAN in your portfolio.
Offerpad (OPAD)
Rolling One-Year Beta: 1.20
Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE: OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.
Why Is OPAD Risky?
- Performance surrounding its homes purchased has lagged its peers
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes
Offerpad’s stock price of $1.02 implies a valuation ratio of 0x forward price-to-sales. Check out our free in-depth research report to learn more about why OPAD doesn’t pass our bar.
One Stock to Watch:
Lyft (LYFT)
Rolling One-Year Beta: 1.31
Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada.
Why Could LYFT Be a Winner?
- Active Riders have grown by 10.1% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Additional sales over the last three years increased its profitability as the 72.9% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin expanded by 23.3 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Lyft is trading at $15.41 per share, or 12.7x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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.
