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1 Volatile Stock with Promising Prospects and 2 to Approach with Caution

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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.

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 with massive upside potential and two that could just as easily collapse.

Two Stocks to Sell:

SiteOne (SITE)

Rolling One-Year Beta: 1.12

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 Fall Short?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 17.7% annually
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

SiteOne is trading at $119.57 per share, or 29.9x forward P/E. If you’re considering SITE for your portfolio, see our FREE research report to learn more.

The Toro Company (TTC)

Rolling One-Year Beta: 1.20

Ceasing all production to support the war effort during World War II, Toro (NYSE: TTC) offers outdoor equipment for residential, commercial, and agricultural use.

Why Do We Avoid TTC?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.9% annually over the last two years
  2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 9.1 percentage points
  3. Waning returns on capital imply its previous profit engines are losing steam

The Toro Company’s stock price of $67.74 implies a valuation ratio of 14.7x forward P/E. Check out our free in-depth research report to learn more about why TTC doesn’t pass our bar.

One Stock to Watch:

CrowdStrike (CRWD)

Rolling One-Year Beta: 1.94

Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ: CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks.

Why Should CRWD Be on Your Watchlist?

  1. ARR growth averaged 26.1% over the last year, showing customers are willing to take multi-year bets on its offerings
  2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable three-year growth trajectory
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

At $479.88 per share, CrowdStrike trades at 23.8x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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