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2 Volatile Stocks for Long-Term Investors and 1 Facing Challenges

ANF 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. Keeping that in mind, here are two volatile stocks with massive upside potential and one that might not be worth the risk.

One Stock to Sell:

Manitowoc (MTW)

Rolling One-Year Beta: 1.64

Contracted by the United States Navy during WWII, Manitowoc (NYSE: MTW) provides cranes and lifting equipment.

Why Do We Steer Clear of MTW?

  1. Demand cratered as it couldn’t win new orders over the past two years, leading to an average 12.5% decline in its backlog
  2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 17.1% annually
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

Manitowoc’s stock price of $13.22 implies a valuation ratio of 17.7x forward P/E. If you’re considering MTW for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Abercrombie and Fitch (ANF)

Rolling One-Year Beta: 1.17

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Why Are We Positive On ANF?

  1. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 14.8% over the past two years
  2. Unique assortment of products and pricing power lead to a best-in-class gross margin of 63.6%
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

At $99 per share, Abercrombie and Fitch trades at 9.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

First Citizens BancShares (FCNCA)

Rolling One-Year Beta: 1.33

With roots dating back to 1898 and a significant expansion through its 2023 acquisition of Silicon Valley Bank, First Citizens BancShares (NASDAQGS:FCNC.A) is a bank holding company that provides financial services to individuals and businesses through its First-Citizens Bank & Trust Company subsidiary.

Why Could FCNCA Be a Winner?

  1. Impressive 37.8% annual net interest income growth over the last five years indicates it’s winning market share this cycle
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 23.2% exceeded its revenue gains over the last two years
  3. Impressive 36.8% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle

First Citizens BancShares is trading at $1,972 per share, or 1.2x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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