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 that might not be worth the risk.

Two Stocks to Sell:

Helios (HLIO)

Rolling One-Year Beta: 1.92

Founded on the principle of treating others as one wants to be treated, Helios (NYSE: HLIO) designs, manufactures, and sells motion and electronic control components for various sectors.

Why Do We Think HLIO Will Underperform?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Helios is trading at $52.29 per share, or 18.8x forward P/E. Read our free research report to see why you should think twice about including HLIO in your portfolio.

Kyndryl (KD)

Rolling One-Year Beta: 1.42

Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers.

Why Does KD Worry Us?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.8% annually over the last five years
2. Poor free cash flow margin of -0.5% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Negative returns on capital show management lost money while trying to expand the business

At $24.08 per share, Kyndryl trades at 8.4x forward P/E. If you’re considering KD for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Carlyle (CG)

Rolling One-Year Beta: 1.93

Founded in 1987 with just $5 million in capital and named after the iconic New York hotel where the founders first met, The Carlyle Group (NASDAQ: CG) is a global investment firm that raises, manages, and deploys capital across private equity, credit, and investment solutions.

Why Will CG Outperform?

1. Annual revenue growth of 10.9% over the last five years was above the sector average and underscores its products and services value to customers
2. Efficiency rose over the last two years as its fee-related earnings increased by 23.6% per year
3. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 23.9% outpaced its revenue gains

Carlyle’s stock price of $51.13 implies a valuation ratio of 11.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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

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