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1 Volatile Stock to Own for Decades and 2 That Underwhelm

HWM Cover Image

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:

Gorman-Rupp (GRC)

Rolling One-Year Beta: 1.25

Powering fluid dynamics since 1934, Gorman-Rupp (NYSE: GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.

Why Does GRC Worry Us?

  1. Sales trends were unexciting over the last two years as its 3.3% annual growth was below the typical industrials company
  2. Anticipated sales growth of 3.7% for the next year implies demand will be shaky
  3. Free cash flow margin shrank by 4.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Gorman-Rupp’s stock price of $42.75 implies a valuation ratio of 19.2x forward P/E. Check out our free in-depth research report to learn more about why GRC doesn’t pass our bar.

MetLife (MET)

Rolling One-Year Beta: 1.05

Founded in 1863 by a group of New York businessmen during the Civil War era, MetLife (NYSE: MET) is a global financial services company that provides insurance, annuities, employee benefits, and asset management services to individuals and businesses worldwide.

Why Do We Steer Clear of MET?

  1. 1.9% annual declines in net premiums earned for the past two years indicates policy sales struggled this cycle
  2. Earnings per share lagged its peers over the last two years as they only grew by 13.6% annually
  3. Annual book value per share declines of 13% for the past five years show its capital management struggled during this cycle

MetLife is trading at $81.50 per share, or 2.1x forward P/B. Dive into our free research report to see why there are better opportunities than MET.

One Stock to Buy:

Howmet (HWM)

Rolling One-Year Beta: 1.51

Inventing the first forged aluminum truck wheel, Howmet (NYSE: HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.

Why Are We Bullish on HWM?

  1. Market share has increased this cycle as its 11.6% annual revenue growth over the last two years was exceptional
  2. Share buybacks catapulted its annual earnings per share growth to 41.9%, which outperformed its revenue gains over the last two years
  3. Free cash flow margin expanded by 11.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

At $177.44 per share, Howmet trades at 46.5x 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 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 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

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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