1 Volatile Stock with Impressive Fundamentals and 2 to Turn Down

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.

These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here is one volatile stock that could reward patient investors and two best left to the gamblers.

Two Stocks to Sell:

RingCentral (RNG)

Rolling One-Year Beta: 1.62

Founded in 1999 during the dot-com era, RingCentral (NYSE:RNG) provides software as a service that unifies phone, text, fax, video calls and chat in one platform.

Why Does RNG Give Us Pause?

  1. Underwhelming ARR growth of 8.9% over the last year suggests the company faced challenges in acquiring and retaining long-term customers

  2. Net revenue retention rate of 99.1% shows it has a tough time retaining customers

  3. Estimated sales growth of 4.6% for the next 12 months implies demand will slow from its three-year trend

RingCentral’s stock price of $24.88 implies a valuation ratio of 0.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than RNG .

NetApp (NTAP)

Rolling One-Year Beta: 1.50

Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ:NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.

Why Should You Sell NTAP?

  1. Sales stagnated over the last two years and signal the need for new growth strategies

  2. Customers had second thoughts about committing to its offerings over the past two years as its billings plateaued

  3. Projected sales growth of 3.8% for the next 12 months suggests sluggish demand

NetApp is trading at $88.42 per share, or 11.4x forward price-to-earnings. Read our free research report to see why you should think twice about including NTAP in your portfolio, it’s free .

One Stock to Buy:

The Trade Desk (TTD)

Rolling One-Year Beta: 1.62

Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ:TTD) offers cloud-based software that uses data to help advertisers better plan, place, and target their online ads.

Why Is TTD a Top Pick?

  1. Billings growth has averaged 27% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases

  2. Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale

  3. Highly efficient business model is illustrated by its impressive 17.5% operating margin, and its operating leverage amplified its profits over the last year

OK