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.
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 best left to the gamblers.
Two Stocks to Sell:
Brunswick (BC)
Rolling One-Year Beta: 1.25
Formerly known as Brunswick-Balke-Collender Company, Brunswick (NYSE: BC) is a designer and manufacturer of recreational marine products, including boats, engines, and marine parts.
Why Do We Pass on BC?
- Annual revenue declines of 13% over the last two years indicate problems with its market positioning
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 4.2% annually while its revenue grew
- Diminishing returns on capital suggest its earlier profit pools are drying up
Brunswick’s stock price of $64.65 implies a valuation ratio of 16.2x forward P/E. Dive into our free research report to see why there are better opportunities than BC.
Columbus McKinnon (CMCO)
Rolling One-Year Beta: 1.26
With 19 different brands across the globe, Columbus McKinnon (NASDAQ: CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.
Why Do We Think CMCO Will Underperform?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 9.3% annually
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.4 percentage points
Columbus McKinnon is trading at $14.78 per share, or 5.6x forward P/E. Read our free research report to see why you should think twice about including CMCO in your portfolio.
One Stock to Watch:
Atlassian (TEAM)
Rolling One-Year Beta: 1.52
Founded by Australian co-CEOs Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian (NASDAQ: TEAM) provides software as a service that makes it easier for large teams of software developers to manage projects, especially in software development.
Why Are We Positive On TEAM?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 14% over the last year
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Robust free cash flow margin of 27.1% gives it many options for capital deployment
At $164.02 per share, Atlassian trades at 7x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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