1 Volatile Stock for Long-Term Investors and 2 We Brush Off
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. Keeping that in mind, here is one volatile stock that could deliver huge gains and two that could just as easily collapse.
Rolling One-Year Beta: 2.15
Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US.
Why Are We Wary of ANGI?
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Service Requests have declined by 20.6% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
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Projected sales for the next 12 months are flat and suggest demand will be subdued
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High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum
Angi is trading at $12.06 per share, or 5x forward EV/EBITDA. If you’re considering ANGI for your portfolio, see our FREE research report to learn more.
Rolling One-Year Beta: 1.90
Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE:SPHR) hosts live entertainment events and distributes content across various media platforms.
Why Do We Avoid SPHR?
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Lackluster 8.5% annual revenue growth over the last five years indicates the company is losing ground to competitors
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Poor free cash flow margin of 1.9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
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Rising returns on capital show management is making relatively better investments
At $93.40 per share, Sphere Entertainment trades at 13.1x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SPHR doesn’t pass our bar.
Rolling One-Year Beta: 2.01
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Why Does HIMS Stand Out?
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Business is winning new contracts that can potentially increase in value as its customer base averaged 38.9% growth over the past two years
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Free cash flow margin grew by 21.3 percentage points over the last five years, giving the company more chips to play with
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Historical investments are beginning to pay off as its returns on capital are growing
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