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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here is one volatile stock that could deliver huge gains and two best left to the gamblers.
Two Stocks to Sell:
Allient (ALNT)
Rolling One-Year Beta: 1.65
Founded in 1962, Allient (NASDAQ: ALNT) develops and manufactures precision and specialty-controlled motion components and systems.
Why Does ALNT Fall Short?
- Annual sales declines of 3.5% for the past two years show its products and services struggled to connect with the market during this cycle
- Performance over the past two years was negatively impacted by new share issuances as its earnings per share dropped by 12.6% annually, worse than its revenue
- ROIC of 8% reflects management’s challenges in identifying attractive investment opportunities, and its falling returns suggest its earlier profit pools are drying up
Allient is trading at $44 per share, or 21.5x forward P/E. If you’re considering ALNT for your portfolio, see our FREE research report to learn more.
Repligen (RGEN)
Rolling One-Year Beta: 1.19
With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ: RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.
Why Do We Think RGEN Will Underperform?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 16.9 percentage points
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Repligen’s stock price of $126.80 implies a valuation ratio of 65.6x forward P/E. To fully understand why you should be careful with RGEN, check out our full research report (it’s free).
One Stock to Watch:
Arlo Technologies (ARLO)
Rolling One-Year Beta: 1.81
Originally spun off from networking equipment maker Netgear in 2018, Arlo Technologies (NYSE: ARLO) provides cloud-based smart security devices and subscription services that help consumers and businesses monitor and protect their homes, properties, and loved ones.
Why Does ARLO Stand Out?
- Operating margin improvement of 13.1 percentage points over the last five years demonstrates its ability to scale efficiently
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 434% over the last two years outstripped its revenue performance
- Free cash flow margin jumped by 17.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $17.37 per share, Arlo Technologies trades at 25.3x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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 183% over the last five years (as of March 31st 2025).
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