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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here are two volatile stocks that could reward patient investors and one that could just as easily collapse.
One IndustrialsStock to Sell:
Regal Rexnord (RRX)
Rolling One-Year Beta: 1.38
Headquartered in Milwaukee, Regal Rexnord (NYSE: RRX) provides power transmission and industrial automation products.
Why Are We Cautious About RRX?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Earnings per share fell by 5% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up
Regal Rexnord’s stock price of $139.84 implies a valuation ratio of 13.8x forward P/E. Check out our free in-depth research report to learn more about why RRX doesn’t pass our bar.
Two Industrials Stocks to Buy:
Quanta (PWR)
Rolling One-Year Beta: 1.47
A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Should You Buy PWR?
- Backlog has averaged 23.1% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 22.4% annually
At $361 per share, Quanta trades at 34x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
American Superconductor (AMSC)
Rolling One-Year Beta: 2.49
Founded in 1987, American Superconductor (NASDAQ: AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
Why Are We Backing AMSC?
- Market share has increased this cycle as its 45% annual revenue growth over the last two years was exceptional
- Free cash flow turned positive over the last five years, indicating the company has passed a significant test
- Historical investments are beginning to pay off as its returns on capital are growing
American Superconductor is trading at $31.90 per share, or 59.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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 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 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.
