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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here is one volatile stock that could reward patient investors and two that might not be worth the risk.
Two Stocks to Sell:
iHeartMedia (IHRT)
Rolling One-Year Beta: 1.63
Occasionally featuring celebrity hosts like Ryan Seacrest on its shows, iHeartMedia (NASDAQ: IHRT) is a leading multimedia company renowned for its extensive network of radio stations, digital platforms, and live events across the globe.
Why Do We Steer Clear of IHRT?
- Lackluster 4.9% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
iHeartMedia is trading at $3.98 per share, or 7.9x forward EV-to-EBITDA. If you’re considering IHRT for your portfolio, see our FREE research report to learn more.
Emerson Electric (EMR)
Rolling One-Year Beta: 1.32
Founded in 1890, Emerson Electric (NYSE: EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets.
Why Does EMR Fall Short?
- Sizable revenue base leads to growth challenges as its 1.4% annual revenue increases over the last five years fell short of other industrials companies
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Emerson Electric’s stock price of $144.19 implies a valuation ratio of 21.9x forward P/E. Read our free research report to see why you should think twice about including EMR in your portfolio.
One Stock to Watch:
PJT (PJT)
Rolling One-Year Beta: 1.05
Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners (NYSE: PJT) is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.
Why Do We Watch PJT?
- Impressive 22.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 36.8% over the last two years outstripped its revenue performance
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $181.19 per share, PJT trades at 24.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.
