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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here is one volatile stock with massive upside potential and two that might not be worth the risk.
Two Stocks to Sell:
UFP Technologies (UFPT)
Rolling One-Year Beta: 1.44
With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ: UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.
Why Does UFPT Worry Us?
- Smaller revenue base of $547.6 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
UFP Technologies’s stock price of $228 implies a valuation ratio of 25.1x forward P/E. To fully understand why you should be careful with UFPT, check out our full research report (it’s free).
Elanco (ELAN)
Rolling One-Year Beta: 1.07
Originally established as a division of pharmaceutical giant Eli Lilly before becoming independent in 2018, Elanco Animal Health (NYSE: ELAN) develops and sells medications, vaccines, and other health products for pets and farm animals across more than 90 countries.
Why Do We Think Twice About ELAN?
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Performance over the past five years was negatively impacted by new share issuances as its earnings per share were flat while its revenue grew
- Push for growth has led to negative returns on capital, signaling value destruction
At $14.51 per share, Elanco trades at 18x forward P/E. Dive into our free research report to see why there are better opportunities than ELAN.
One Stock to Watch:
Impinj (PI)
Rolling One-Year Beta: 1.78
Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ: PI) is a maker of radio-frequency identification (RFID) hardware and software.
Why Do We Watch PI?
- Annual revenue growth of 11.9% over the past two years was outstanding, reflecting market share gains this cycle
- Additional sales over the last five years increased its profitability as the 38.1% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin jumped by 23.7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Impinj is trading at $113 per share, or 70.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. 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-small-cap company Exlservice (+354% 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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