A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south. While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here is one volatile stock that could reward patient investors and two that could just as easily collapse.
Two Stocks to Sell:
Custom Truck One Source (CTOS)
Rolling One-Year Beta: 1.78
Inspired by a family gas station, Custom Truck One Source (NYSE: CTOS) is a distributor of trucks and heavy equipment.
Why Are We Cautious About CTOS?
- Muted 4.1% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Earnings per share have contracted by 52% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Free cash flow margin shrank by 24.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Custom Truck One Source’s stock price of $5.81 implies a valuation ratio of 61.4x forward P/E. To fully understand why you should be careful with CTOS, check out our full research report (it’s free).
TTM Technologies (TTMI)
Rolling One-Year Beta: 1.92
As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ: TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.
Why Are We Hesitant About TTMI?
- Annual revenue growth of 4.4% over the last five years was below our standards for the business services sector
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.1 percentage points
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $46.79 per share, TTM Technologies trades at 20.8x forward P/E. If you’re considering TTMI for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
The Bancorp (TBBK)
Rolling One-Year Beta: 1.41
Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ: TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.
Why Will TBBK Beat the Market?
- Impressive 15.2% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Differentiated product suite leads to a Strong performance of its loan book is reflected in its High-yielding loan book and low cost of funds lead to a best-in-class net interest margin of 4.7%
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 24.1% exceeded its revenue gains over the last two years
The Bancorp is trading at $65.72 per share, or 3.4x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. 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 Comfort Systems (+782% 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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