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1 Volatile Stock for Long-Term Investors and 2 to Keep Off Your Radar

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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.

At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here is one volatile stock that could deliver huge gains and two best left to the gamblers.

Two Stocks to Sell:

SiteOne (SITE)

Rolling One-Year Beta: 1.58

Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE: SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.

Why Does SITE Give Us Pause?

  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. Earnings per share fell by 22.6% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $114.85 per share, SiteOne trades at 28x forward price-to-earnings. Check out our free in-depth research report to learn more about why SITE doesn’t pass our bar.

Mirion (MIR)

Rolling One-Year Beta: 1.63

With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE: MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.

Why Do We Think Twice About MIR?

  1. Modest revenue base of $860.8 million gives it less fixed cost leverage and fewer distribution channels than larger companies
  2. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 7.6 percentage points
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Mirion is trading at $14.22 per share, or 29.6x forward price-to-earnings. To fully understand why you should be careful with MIR, check out our full research report (it’s free).

One Stock to Buy:

Core & Main (CNM)

Rolling One-Year Beta: 1.40

Formerly a division of industrial distributor HD Supply, Core & Main (NYSE: CNM) is a provider of water, wastewater, and fire protection products and services.

Why Is CNM a Good Business?

  1. Market share has increased this cycle as its 17% annual revenue growth over the last five years was exceptional
  2. Operating margin expanded by 4.7 percentage points over the last five years as it scaled and became more efficient
  3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 60.2% exceeded its revenue gains over the last five years

Core & Main’s stock price of $50.98 implies a valuation ratio of 20.7x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.

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