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 with massive upside potential and two that might not be worth the risk.
Two Stocks to Sell:
Tapestry (TPR)
Rolling One-Year Beta: 1.25
Originally founded as Coach, Tapestry (NYSE: TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.
Why Should You Dump TPR?
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Poor expense management has led to an operating margin of 11.8% that is below the industry average
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $118.15 per share, Tapestry trades at 21.2x forward P/E. Check out our free in-depth research report to learn more about why TPR doesn’t pass our bar.
Citigroup (C)
Rolling One-Year Beta: 1.64
With operations in nearly 160 countries and a history dating back to 1812, Citigroup (NYSE: C) is a global financial services company that provides banking, investment, wealth management, and payment solutions to consumers, corporations, and governments.
Why Do We Pass on C?
- Large revenue base makes it harder to expand quickly, and its annual net interest income growth of 5.9% over the last five years was below our standards for the banking sector
- Estimated net interest income growth of 2.3% for the next 12 months implies demand will slow from its five-year trend
- Net interest margin of 2.4% reflects its high servicing and capital costs
Citigroup’s stock price of $111.15 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with C, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Atlassian (TEAM)
Rolling One-Year Beta: 1.60
Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ: TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.
Why Are We Positive On TEAM?
- Impressive 21.4% annual revenue growth over the last two years indicates it’s winning market share
- Software is difficult to replicate at scale and results in a top-tier gross margin of 83.5%
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
Atlassian is trading at $161.66 per share, or 6.4x 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 5 Strong Momentum Stocks for this week. 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 Exlservice (+354% 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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