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. Keeping that in mind, here are two volatile stocks with massive upside potential and one best left to the gamblers.
One Stock to Sell:
Enpro (NPO)
Rolling One-Year Beta: 1.33
Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE: NPO) designs, manufactures, and sells products used for machinery in various industries.
Why Does NPO Fall Short?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Earnings per share lagged its peers over the last two years as they only grew by 4.7% annually
- Underwhelming 6.5% return on capital reflects management’s difficulties in finding profitable growth opportunities
Enpro is trading at $271.52 per share, or 31.6x forward P/E. To fully understand why you should be careful with NPO, check out our full research report (it’s free).
Two Stocks to Watch:
Montrose (MEG)
Rolling One-Year Beta: 1.52
Founded to protect a tree-lined two-lane road, Montrose (NYSE: MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.
Why Are We Fans of MEG?
- Annual revenue growth of 17.6% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 109% annually over the last two years and trumped its peers
- Free cash flow margin increased by 6.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Montrose’s stock price of $24.81 implies a valuation ratio of 19.2x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Ares (ARES)
Rolling One-Year Beta: 1.82
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE: ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Why Is ARES a Top Pick?
- Impressive 21.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Efficiency rose over the last five years as its fee-related earnings increased by 32.6% per year
- Earnings per share grew by 20.7% annually over the last five years, comfortably beating the peer group average
At $138.11 per share, Ares trades at 20x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 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 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
