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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here is one volatile stock that could deliver huge gains and two that might not be worth the risk.
Two Stocks to Sell:
GEO Group (GEO)
Rolling One-Year Beta: 1.93
With a global footprint spanning three continents and approximately 81,000 beds across 100 facilities, GEO Group (NYSE: GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa.
Why Is GEO Risky?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 31.5% annually
- Free cash flow margin dropped by 8.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up
GEO Group’s stock price of $25.90 implies a valuation ratio of 14.7x forward P/E. Check out our free in-depth research report to learn more about why GEO doesn’t pass our bar.
Simmons First National (SFNC)
Rolling One-Year Beta: 1.07
With roots dating back to 1903 and a presence across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas, Simmons First National (NASDAQ: SFNC) is a regional bank holding company that provides banking and financial services to individuals and businesses.
Why Do We Think SFNC Will Underperform?
- Net interest income stagnated over the last five years and signal the need for new growth strategies
- Sales were less profitable over the last five years as its earnings per share fell by 11.8% annually, worse than its revenue declines
- Annual interest expenses are high relative to its profits, increasing the probability of its failure to meet certain borrowing obligations
At $19.81 per share, Simmons First National trades at 0.7x forward P/B. Dive into our free research report to see why there are better opportunities than SFNC.
One Stock to Watch:
Zscaler (ZS)
Rolling One-Year Beta: 1.81
After successfully selling all four of his previous cybersecurity companies, Jay Chaudhry's fifth venture, Zscaler (NASDAQ: ZS) offers software-as-a-service that helps companies securely connect to applications and networks in the cloud.
Why Do We Like ZS?
- Ability to secure long-term commitments with customers is evident in its 24.3% ARR growth over the last year
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable three-year growth trajectory
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Zscaler is trading at $289.50 per share, or 14.7x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
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