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. Keeping that in mind, here are two volatile stocks with massive upside potential and one that might not be worth the risk.
One Stock to Sell:
TaskUs (TASK)
Rolling One-Year Beta: 1.26
Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ: TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies.
Why Are We Cautious About TASK?
- Muted 1.8% annual revenue growth over the last two years shows its demand lagged behind its business services peers
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Underwhelming 5.4% return on capital reflects management’s difficulties in finding profitable growth opportunities
TaskUs is trading at $17.38 per share, or 12.5x forward P/E. Dive into our free research report to see why there are better opportunities than TASK.
Two Stocks to Watch:
Lam Research (LRCX)
Rolling One-Year Beta: 1.75
Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ: LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.
Why Do We Love LRCX?
- Impressive 12.9% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Excellent operating margin of 30.5% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last five years
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $100.26 per share, Lam Research trades at 24.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Bank OZK (OZK)
Rolling One-Year Beta: 1.23
Founded in 1903 and rebranded from Bank of the Ozarks in 2018, Bank OZK (NASDAQ: OZK) is a commercial bank that specializes in real estate lending while offering a full range of banking services to individuals and businesses.
Why Does OZK Stand Out?
- Impressive 12.6% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Earnings per share grew by 7.8% annually over the last two years and trumped its peers
- Impressive 10.5% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
Bank OZK’s stock price of $52.20 implies a valuation ratio of 1x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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
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