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1 Volatile Stock Worth Your Attention and 2 We Question

SWKS Cover Image

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.

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 that could reward patient investors and two that could just as easily collapse.

Two Stocks to Sell:

Skyworks Solutions (SWKS)

Rolling One-Year Beta: 1.59

Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.

Why Should You Dump SWKS?

  1. Sales tumbled by 7.5% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
  3. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 19.3 percentage points

At $68.58 per share, Skyworks Solutions trades at 15.7x forward P/E. Dive into our free research report to see why there are better opportunities than SWKS.

AerSale (ASLE)

Rolling One-Year Beta: 1.20

Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ: ASLE) delivers full-service support to mid-life commercial aircraft.

Why Is ASLE Risky?

  1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
  2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
  3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

AerSale’s stock price of $5.95 implies a valuation ratio of 10x forward P/E. If you’re considering ASLE for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Nextracker (NXT)

Rolling One-Year Beta: 1.21

With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextracker (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.

Why Should You Buy NXT?

  1. Demand is greater than supply as the company’s 56.9% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
  2. Free cash flow margin grew by 15.9 percentage points over the last five years, giving the company more chips to play with
  3. Returns on capital are growing as management capitalizes on its market opportunities

Nextracker is trading at $88.10 per share, or 22.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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