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2 Volatile Stocks with Impressive Fundamentals and 1 to Brush Off

MNDY Cover Image

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 are two volatile stocks that could deliver huge gains and one best left to the gamblers.

One Stock to Sell:

Hewlett Packard Enterprise (HPE)

Rolling One-Year Beta: 1.85

Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise (NYSE: HPE) provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.

Why Are We Out on HPE?

  1. Sizable revenue base leads to growth challenges as its 2.9% annual revenue increases over the last five years fell short of other business services companies
  2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 5.9% annually
  3. 6.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Hewlett Packard Enterprise is trading at $20.41 per share, or 10.5x forward P/E. To fully understand why you should be careful with HPE, check out our full research report (it’s free).

Two Stocks to Buy:

Monday.com (MNDY)

Rolling One-Year Beta: 2.31

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 Is MNDY a Good Business?

  1. ARR growth averaged 32.4% over the last year, showing customers are willing to take multi-year bets on its offerings
  2. Software is difficult to replicate at scale and results in a best-in-class gross margin of 89.5%
  3. Robust free cash flow margin of 30.4% gives it many options for capital deployment

At $314 per share, Monday.com trades at 12.9x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth 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 Do We Love GE?

  1. Market share has increased this cycle as its 14.5% annual revenue growth over the last two years was exceptional
  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. Improving returns on capital reflect management’s ability to monetize investments

GE Aerospace’s stock price of $257.36 implies a valuation ratio of 45.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 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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