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 is one volatile stock with massive upside potential and two best left to the gamblers.
Two Stocks to Sell:
Kirby (KEX)
Rolling One-Year Beta: 1.27
Transporting goods along all U.S. coasts, Kirby (NYSE: KEX) provides inland and coastal marine transportation services.
Why Is KEX Not Exciting?
- 3.4% annual revenue growth over the last five years was slower than its industrials peers
- Free cash flow margin dropped by 10.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Underwhelming 2.9% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $116.57 per share, Kirby trades at 17.1x forward P/E. To fully understand why you should be careful with KEX, check out our full research report (it’s free).
Telephone and Data Systems (TDS)
Rolling One-Year Beta: 1.10
Operating primarily through its majority-owned subsidiary UScellular and wholly-owned TDS Telecom, Telephone and Data Systems (NYSE: TDS) provides wireless, broadband, video, and voice communications services to 4.6 million wireless and 1.2 million broadband customers across the United States.
Why Is TDS Risky?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.6% annually over the last five years
- Earnings per share have dipped by 25.4% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- High net-debt-to-EBITDA ratio of 26× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Telephone and Data Systems’s stock price of $39.13 implies a valuation ratio of 3.4x forward EV-to-EBITDA. If you’re considering TDS for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Wintrust Financial (WTFC)
Rolling One-Year Beta: 1.28
Founded in 1991 as a community-focused alternative to big banks in the Chicago area, Wintrust Financial (NASDAQGS:WTFC) operates community banks in the Chicago area and provides specialty finance services including insurance premium financing and wealth management.
Why Does WTFC Stand Out?
- Impressive 18.1% annual net interest income growth over the last four years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 7.6% annually
- Impressive 9.5% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
Wintrust Financial is trading at $130.24 per share, or 1.3x forward P/B. 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 9 Market-Beating Stocks. 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 Kadant (+351% 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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