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 is one volatile stock that could reward patient investors and two best left to the gamblers.
Two Stocks to Sell:
Gibraltar (ROCK)
Rolling One-Year Beta: 1.13
Gibraltar (NASDAQ: ROCK) makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.
Why Is ROCK Not Exciting?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 7.4% annually over the last two years
- Anticipated sales growth of 4% for the next year implies demand will be shaky
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 3.1% annually
At $47.48 per share, Gibraltar trades at 9.8x forward P/E. If you’re considering ROCK for your portfolio, see our FREE research report to learn more.
Ally Financial (ALLY)
Rolling One-Year Beta: 1.33
Born from the former GMAC (General Motors Acceptance Corporation) and rebranded in 2010, Ally Financial (NYSE: ALLY) operates a digital-first bank offering auto financing, insurance, mortgage lending, and investment services to consumers and commercial clients.
Why Do We Steer Clear of ALLY?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.2% annually over the last two years
- Earnings per share have dipped by 2.6% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Tier one capital ratio of 9.7% is insufficient to meet regulatory requirements, increasing the probability of government intervention
Ally Financial is trading at $38.19 per share, or 7.7x forward P/E. Dive into our free research report to see why there are better opportunities than ALLY.
One Stock to Buy:
Datadog (DDOG)
Rolling One-Year Beta: 1.39
Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ: DDOG) provides a software platform that helps organizations monitor and secure their cloud applications, infrastructure, and services.
Why Are We Backing DDOG?
- Customers view its software as mission-critical to their operations as its ARR has averaged 26.5% growth over the last year
- Estimated revenue growth of 21.7% for the next 12 months implies its momentum over the last two years will continue
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Datadog’s stock price of $157.70 implies a valuation ratio of 14.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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