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1 Volatile Stock to Target This Week and 2 to Approach with Caution

SNX Cover Image

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.

Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here is one volatile stock that could deliver huge gains and two that could just as easily collapse.

Two Stocks to Sell:

TD SYNNEX (SNX)

Rolling One-Year Beta: 1.15

Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE: SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.

Why Are We Wary of SNX?

  1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
  2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 1.5% annually while its revenue grew
  3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

TD SYNNEX is trading at $135.82 per share, or 10.8x forward P/E. Dive into our free research report to see why there are better opportunities than SNX.

Fifth Third Bancorp (FITB)

Rolling One-Year Beta: 1.15

Named after the merger of Third National Bank and Fifth National Bank in 1908, Fifth Third Bancorp (NASDAQ: FITB) is a financial services company that provides banking, lending, wealth management, and investment services to individuals and businesses across the Midwest and Southeast.

Why Are We Hesitant About FITB?

  1. Muted 4.7% annual net interest income growth over the last four years shows its demand lagged behind its bank peers
  2. Weak unit economics are reflected in its net interest margin of 3%, one of the worst among bank companies
  3. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 2% annually over the last five years

Fifth Third Bancorp’s stock price of $43.02 implies a valuation ratio of 1.5x forward P/B. If you’re considering FITB for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Customers Bancorp (CUBI)

Rolling One-Year Beta: 1.45

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Why Is CUBI a Top Pick?

  1. Solid 9.8% annual net interest income growth over the last four years indicates its offerings are gaining share
  2. Additional sales over the last five years increased its profitability as the 19.4% annual growth in its earnings per share outpaced its revenue
  3. Annual tangible book value per share growth of 18.7% over the last five years was superb and indicates its capital strength increased during this cycle

At $62.13 per share, Customers Bancorp trades at 1.1x forward P/B. Is now a good time to buy? See for yourself in our comprehensive 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-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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