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 with massive upside potential and two that could just as easily collapse.
Two Stocks to Sell:
Kadant (KAI)
Rolling One-Year Beta: 1.35
Headquartered in Massachusetts, Kadant (NYSE: KAI) is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.
Why Are We Hesitant About KAI?
- Annual revenue growth of 7% over the last two years was below our standards for the industrials sector
- Incremental sales over the last two years were less profitable as its 4% annual earnings per share growth lagged its revenue gains
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Kadant’s stock price of $267.57 implies a valuation ratio of 21.3x forward P/E. Dive into our free research report to see why there are better opportunities than KAI.
Stratasys (SSYS)
Rolling One-Year Beta: 2.34
Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ: SSYS) offers 3D printers and related materials, software, and services to many industries.
Why Does SSYS Fall Short?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
At $7.93 per share, Stratasys trades at 54.1x forward P/E. Check out our free in-depth research report to learn more about why SSYS doesn’t pass our bar.
One Stock to Watch:
Medpace (MEDP)
Rolling One-Year Beta: 1.34
Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ: MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.
Why Is MEDP Interesting?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 17.2% over the past two years
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin increased by 6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Medpace is trading at $613 per share, or 33.4x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
