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. That said, here is one volatile stock that could reward patient investors and two that could just as easily collapse.
Two Stocks to Sell:
Purple (PRPL)
Rolling One-Year Beta: 1.69
Founded by two brothers, Purple (NASDAQ: PRPL) creates sleep and home comfort products such as mattresses, pillows, and bedding accessories.
Why Are We Out on PRPL?
- Annual revenue declines of 2.9% over the last five years indicate problems with its market positioning
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
At $1.02 per share, Purple trades at 12.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than PRPL.
UFP Technologies (UFPT)
Rolling One-Year Beta: 1.40
With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ: UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.
Why Are We Wary of UFPT?
- Subscale operations are evident in its revenue base of $588.6 million, meaning it has fewer distribution channels than its larger rivals
UFP Technologies is trading at $199.32 per share, or 20x forward P/E. If you’re considering UFPT for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Impinj (PI)
Rolling One-Year Beta: 2.32
Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ: PI) is a maker of radio-frequency identification (RFID) hardware and software.
Why Should PI Be on Your Watchlist?
- Market share has increased this cycle as its 18.2% annual revenue growth over the last five years was exceptional
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 336% outpaced its revenue gains
- Free cash flow margin expanded by 23.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Impinj’s stock price of $178.20 implies a valuation ratio of 91.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. 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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