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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here is one volatile stock with massive upside potential and two that could just as easily collapse.
Two Stocks to Sell:
Pegasystems (PEGA)
Rolling One-Year Beta: 1.25
With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems (NASDAQ: PEGA) develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.
Why Do We Pass on PEGA?
- Products, pricing, or go-to-market strategy may need some adjustments as its 3.6% average billings growth over the last year was weak
- Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 6.5 percentage points
Pegasystems’s stock price of $35.04 implies a valuation ratio of 3.2x forward price-to-sales. Check out our free in-depth research report to learn more about why PEGA doesn’t pass our bar.
Dine Brands (DIN)
Rolling One-Year Beta: 1.60
Operating a franchise model, Dine Brands (NYSE: DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.
Why Is DIN Risky?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
- Free cash flow margin shrank by 10.2 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Dine Brands is trading at $27.91 per share, or 6.4x forward P/E. If you’re considering DIN for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Upstart (UPST)
Rolling One-Year Beta: 2.80
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 Are We Bullish on UPST?
- Loan originations on its platform are soaring as they averaged 54.3% growth over the last year, enabling the company to collect more fees and expand into new markets like credit cards.
- Expected revenue growth of 30.9% for the next year suggests its market share will rise
- Free cash flow is anticipated to be positive next year, meaning the company has reached a critical turning point
At $25.05 per share, Upstart trades at 1.7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
