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2 Volatile Stocks Worth Investigating and 1 to Steer Clear Of

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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. That said, here are two volatile stocks that could deliver huge gains and one that could just as easily collapse.

One Stock to Sell:

Guardant Health (GH)

Rolling One-Year Beta: 1.58

Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health (NASDAQ: GH) develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies.

Why Is GH Not Exciting?

  1. Issuance of new shares over the last five years caused its earnings per share to fall by 23.7% annually while its revenue grew
  2. Cash-burning history makes us doubt the long-term viability of its business model
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Guardant Health’s stock price of $41.74 implies a valuation ratio of 5.6x forward price-to-sales. If you’re considering GH for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Thermon (THR)

Rolling One-Year Beta: 1.50

Creating the first packaged tracing systems, Thermon (NYSE: THR) is a leading provider of engineered industrial process heating solutions for process industries.

Why Are We Positive On THR?

  1. Offerings are mission-critical for businesses and result in a premier gross margin of 42.3%
  2. Operating margin expanded by 9.5 percentage points over the last five years as it scaled and became more efficient
  3. Free cash flow margin increased by 3.2 percentage points over the last five years, giving the company more capital to invest or return to shareholders

At $28.68 per share, Thermon trades at 14.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

GE Aerospace (GE)

Rolling One-Year Beta: 1.52

One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

Why Will GE Outperform?

  1. Annual revenue growth of 20.1% over the last two years was superb and indicates its market share increased during this cycle
  2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
  3. Returns on capital are climbing as management makes more lucrative bets

GE Aerospace is trading at $214.92 per share, or 38.3x 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

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 176% over the last five years.

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.

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