A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south. While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here is one volatile stock that could reward patient investors and two that could just as easily collapse.
Two Stocks to Sell:
Kadant (KAI)
Rolling One-Year Beta: 1.32
Headquartered in Massachusetts, Kadant (NYSE: KAI) is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.
Why Is KAI Not Exciting?
- 7.2% annual revenue growth over the last two years was slower than its industrials peers
- Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 3.4% annually
Kadant’s stock price of $300.11 implies a valuation ratio of 29.6x forward P/E. Read our free research report to see why you should think twice about including KAI in your portfolio.
WESCO (WCC)
Rolling One-Year Beta: 1.63
Based in Pittsburgh, WESCO (NYSE: WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.
Why Are We Hesitant About WCC?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Free cash flow margin dropped by 3.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
At $163.03 per share, WESCO trades at 11.5x forward P/E. If you’re considering WCC for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Monday.com (MNDY)
Rolling One-Year Beta: 2.97
Founded in 2014 and named after the dreaded first day of the work week, Monday.com (NASDAQ: MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently.
Why Will MNDY Outperform?
- ARR growth averaged 33.3% over the last year, showing customers are willing to take multi-year bets on its offerings
- Prominent and differentiated software results in a best-in-class gross margin of 89.3%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Monday.com is trading at $276.01 per share, or 12.2x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks That Overcame Trump’s 2018 Tariffs
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 Strong Momentum Stocks for this week. 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 Axon (+711% five-year return). Find your next big winner with StockStory today for free.
