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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here is one volatile stock with massive upside potential and two that might not be worth the risk.
Two Stocks to Sell:
Chewy (CHWY)
Rolling One-Year Beta: 1.26
Founded by Ryan Cohen, who later became known for his involvement in GameStop, Chewy (NYSE: CHWY) is an online retailer specializing in pet food, supplies, and healthcare services.
Why Does CHWY Fall Short?
- Sizable revenue base leads to growth challenges as its 9.3% annual revenue increases over the last three years fell short of other consumer internet companies
- Estimated sales growth of 5.1% for the next 12 months implies demand will slow from its three-year trend
- Gross margin of 29% reflects its high servicing costs
At $39.97 per share, Chewy trades at 22.5x forward EV/EBITDA. Check out our free in-depth research report to learn more about why CHWY doesn’t pass our bar.
Nordson (NDSN)
Rolling One-Year Beta: 1.25
Founded in 1954, Nordson Corporation (NASDAQ: NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings.
Why Do We Think Twice About NDSN?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 1.2% annually
- Waning returns on capital imply its previous profit engines are losing steam
Nordson is trading at $227 per share, or 21x forward P/E. If you’re considering NDSN for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Primoris (PRIM)
Rolling One-Year Beta: 1.94
Listed on the NASDAQ in 2008, Primoris (NYSE: PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.
Why Are We Positive On PRIM?
- Market share has increased this cycle as its 15.9% annual revenue growth over the last five years was exceptional
- Backlog has averaged 159% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Earnings per share have massively outperformed its peers over the last two years, increasing by 28.6% annually
Primoris’s stock price of $115.05 implies a valuation ratio of 24.8x forward P/E. Is now a good time to buy? Find out 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 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).
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