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 are two volatile stocks that could deliver huge gains and one best left to the gamblers.
One Stock to Sell:
Power Integrations (POWI)
Rolling One-Year Beta: 1.22
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 Dump POWI?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 15.7 percentage points
- Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 2.1% annually
Power Integrations is trading at $42.87 per share, or 30.6x forward P/E. If you’re considering POWI for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Comfort Systems (FIX)
Rolling One-Year Beta: 2.01
Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.
Why Are We Backing FIX?
- Backlog has averaged 33.6% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Share buybacks catapulted its annual earnings per share growth to 74.2%, which outperformed its revenue gains over the last two years
- Improving returns on capital reflect management’s ability to monetize investments
Comfort Systems’s stock price of $981 implies a valuation ratio of 33.4x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Construction Partners (ROAD)
Rolling One-Year Beta: 1.47
Founded in 2001, Construction Partners (NASDAQ: ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.
Why Should You Buy ROAD?
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 33.2%
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 70.6% over the last two years outstripped its revenue performance
- Free cash flow margin increased by 5.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $121 per share, Construction Partners trades at 43.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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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