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. That said, here is one volatile stock with massive upside potential and two that might not be worth the risk.
Two Stocks to Sell:
Middleby (MIDD)
Rolling One-Year Beta: 1.19
Holding a Guinness World Record for creating the world’s fastest conveyor pizza oven, Middleby (NYSE: MIDD) is a food service and equipment manufacturer.
Why Should You Dump MIDD?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Anticipated sales growth of 2.1% for the next year implies demand will be shaky
- Earnings per share lagged its peers over the last two years as they only grew by 1.2% annually
Middleby is trading at $119.71 per share, or 12.7x forward P/E. If you’re considering MIDD for your portfolio, see our FREE research report to learn more.
OceanFirst Financial (OCFC)
Rolling One-Year Beta: 1.17
Tracing its roots back to 1902 when it began serving coastal New Jersey communities, OceanFirst Financial (NASDAQ: OCFC) operates as a regional bank holding company that provides commercial and consumer banking services primarily in New Jersey and surrounding metropolitan areas.
Why Do We Avoid OCFC?
- Muted 1.9% annual net interest income growth over the last five years shows its demand lagged behind its bank peers
- 41.3 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the company’s willingness to accept lower yields to defend its market position
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 5.1% annually while its revenue grew
At $16.42 per share, OceanFirst Financial trades at 0.6x forward P/B. Check out our free in-depth research report to learn more about why OCFC doesn’t pass our bar.
One Stock to Watch:
MACOM (MTSI)
Rolling One-Year Beta: 1.63
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
Why Does MTSI Stand Out?
- Annual revenue growth of 15.8% over the last two years was superb and indicates its market share increased during this cycle
- Market share is on track to rise over the next 12 months as its 18.7% projected revenue growth implies demand will accelerate from its two-year trend
- Earnings per share have massively outperformed its peers over the last five years, increasing by 41.3% annually
MACOM’s stock price of $121.70 implies a valuation ratio of 30.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
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 6 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).
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 Comfort Systems (+782% 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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