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1 Volatile Stock with Promising Prospects and 2 We Avoid

POWI Cover Image

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.

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 deliver huge gains and two that could just as easily collapse.

Two Stocks to Sell:

Power Integrations (POWI)

Rolling One-Year Beta: 1.39

A leading supplier of parts for electronics such as home appliances, Power Integrations (NASDAQ: POWI) is a semiconductor designer and developer specializing in products used for high-voltage power conversion.

Why Should You Sell POWI?

  1. Annual sales declines of 1.9% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Operating margin declined by 22.6 percentage points over the last five years as its sales cratered
  3. Sales were less profitable over the last five years as its earnings per share fell by 6.1% annually, worse than its revenue declines

Power Integrations’s stock price of $47.21 implies a valuation ratio of 36.1x forward P/E. To fully understand why you should be careful with POWI, check out our full research report (it’s free).

Zebra (ZBRA)

Rolling One-Year Beta: 1.58

Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Why Does ZBRA Worry Us?

  1. Muted 3.9% annual revenue growth over the last five years shows its demand lagged behind its business services peers
  2. Earnings per share lagged its peers over the last five years as they only grew by 4.3% annually
  3. Waning returns on capital imply its previous profit engines are losing steam

At $264.62 per share, Zebra trades at 14.7x forward P/E. Dive into our free research report to see why there are better opportunities than ZBRA.

One Stock to Watch:

Old National Bank (ONB)

Rolling One-Year Beta: 1.12

Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ: ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.

Why Do We Like ONB?

  1. Annual net interest income growth of 28.1% over the past five years was outstanding, reflecting market share gains this cycle
  2. Expected net interest income growth of 17.6% for the next year suggests its market share will rise
  3. Anticipated efficiency ratio improvement of -6.6 percentage points over the next year signals it will gain leverage on its fixed costs and become more productive

Old National Bank is trading at $24.47 per share, or 1.1x forward P/B. 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

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.

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