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.

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:

Ralph Lauren (RL)

Rolling One-Year Beta: 1.06

Originally founded as a necktie company, Ralph Lauren (NYSE: RL) is an iconic American fashion brand known for its classic and sophisticated style.

Why Do We Avoid RL?

1. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
2. Operating margin of 13.1% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 11.3% for the last two years

Ralph Lauren’s stock price of $353.21 implies a valuation ratio of 22.2x forward P/E. Read our free research report to see why you should think twice about including RL in your portfolio.

Cognex (CGNX)

Rolling One-Year Beta: 1.15

Founded in 1981 when computer vision was in its infancy, Cognex (NASDAQ: CGNX) develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products.

Why Are We Out on CGNX?

1. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 12.9 percentage points
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 10.2 percentage points
3. Eroding returns on capital suggest its historical profit centers are aging

Cognex is trading at $39.01 per share, or 36.7x forward P/E. Check out our free in-depth research report to learn more about why CGNX doesn’t pass our bar.

One Stock to Watch:

Nutanix (NTNX)

Rolling One-Year Beta: 1.23

Originally pioneering hyperconverged infrastructure to break down traditional data center silos, Nutanix (NASDAQ: NTNX) provides a unified software platform that enables organizations to run applications and manage data across private, public, and hybrid cloud environments.

Why Are We Fans of NTNX?

1. Customers view its software as mission-critical to their operations as its ARR has averaged 17.6% growth over the last year
2. Software is difficult to replicate at scale and leads to a best-in-class gross margin of 87%
3. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs

At $39.78 per share, Nutanix trades at 4x forward price-to-sales. Is now the right time to buy? 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 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.