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.

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 reward patient investors and two best left to the gamblers.

Two Stocks to Sell:

Udemy (UDMY)

Rolling One-Year Beta: 1.32

With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ: UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics.

Why Do We Think Twice About UDMY?

1. Preference for prioritizing user growth over monetization has led to 1.3% annual drops in its average revenue per buyer
2. Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
3. Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend

Udemy’s stock price of $6.46 implies a valuation ratio of 10.8x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than UDMY.

Hillenbrand (HI)

Rolling One-Year Beta: 2.06

Hillenbrand, Inc. (NYSE: HI) is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Why Is HI Risky?

1. Annual revenue growth of 3.5% over the last two years was below our standards for the industrials sector
2. 18.9 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Waning returns on capital imply its previous profit engines are losing steam

Hillenbrand is trading at $24.57 per share, or 10.9x forward P/E. If you’re considering HI for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Leonardo DRS (DRS)

Rolling One-Year Beta: 1.21

Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ: DRS) is a provider of defense systems, electronics, and military support services.

Why Does DRS Catch Our Eye?

1. Annual revenue growth of 13.6% over the last two years was superb and indicates its market share increased during this cycle
2. Average backlog growth of 50.1% over the past two years shows it has a steady sales pipeline that will drive future orders
3. Additional sales over the last two years increased its profitability as the 19.2% annual growth in its earnings per share outpaced its revenue

At $42.88 per share, Leonardo DRS trades at 38.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

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 9 Market-Beating Stocks. 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-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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