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. That said, here are two volatile stocks that could reward patient investors and one best left to the gamblers.

One Stock to Sell:

Sonos (SONO)

Rolling One-Year Beta: 1.43

A pioneer in connected home audio systems, Sonos (NASDAQ: SONO) offers a range of premium wireless speakers and sound systems.

Why Should You Sell SONO?

1. Sales tumbled by 8% annually over the last two years, showing consumer trends are working against its favor
2. Poor expense management has led to operating margin losses
3. Negative returns on capital show management lost money while trying to expand the business

At $13.92 per share, Sonos trades at 22.8x forward P/E. If you’re considering SONO for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Energy Recovery (ERII)

Rolling One-Year Beta: 1.38

Having saved far more than a trillion gallons of water, Energy Recovery (NASDAQ: ERII) provides energy recovery devices to the water treatment, oil and gas, and chemical processing sectors.

Why Are We Positive On ERII?

1. Market share has increased this cycle as its 15.2% annual revenue growth over the last two years was exceptional
2. Superior product capabilities and pricing power lead to a best-in-class gross margin of 68%
3. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Energy Recovery’s stock price of $14.21 implies a valuation ratio of 19.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Dycom (DY)

Rolling One-Year Beta: 1.18

Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE: DY) builds and maintains telecommunications infrastructure.

Why Could DY Be a Winner?

1. Market share has increased this cycle as its 11.1% annual revenue growth over the last two years was exceptional
2. Operating margin expanded by 5.1 percentage points over the last five years as it scaled and became more efficient
3. Share buybacks catapulted its annual earnings per share growth to 18%, which outperformed its revenue gains over the last two years

Dycom is trading at $252.47 per share, or 24.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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-micro-cap company Kadant (+351% 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

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