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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. 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:
Gibraltar (ROCK)
Rolling One-Year Beta: 1.20
Gibraltar (NASDAQ: ROCK) makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.
Why Does ROCK Fall Short?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.4% annually over the last two years
- Gross margin of 25.4% reflects its high production costs
Gibraltar’s stock price of $62.92 implies a valuation ratio of 12.6x forward P/E. Dive into our free research report to see why there are better opportunities than ROCK.
Sunrun (RUN)
Rolling One-Year Beta: 1.10
Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ: RUN) provides residential solar electricity, specializing in panel installation and leasing services.
Why Does RUN Worry Us?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 6.2% annually over the last two years
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Sunrun is trading at $15.75 per share, or 21.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why RUN doesn’t pass our bar.
One Stock to Watch:
Dutch Bros (BROS)
Rolling One-Year Beta: 2.29
Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.
Why Should BROS Be on Your Watchlist?
- Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth
- Same-store sales growth over the past two years shows it’s successfully drawing diners into its restaurants
- Free cash flow margin expanded by 9.8 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends
At $63.55 per share, Dutch Bros trades at 91.1x forward P/E. Is now a good time to buy? See for yourself in our full 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 Strong Momentum 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-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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