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 that might not be worth the risk.
One Stock to Sell:
L.B. Foster (FSTR)
Rolling One-Year Beta: 1.53
Founded with a $2,500 loan, L.B. Foster (NASDAQ: FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.
Why Is FSTR Risky?
- Annual sales declines of 1.6% for the past five years show its products and services struggled to connect with the market during this cycle
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 0.3% for the last five years
- Low returns on capital reflect management’s struggle to allocate funds effectively
L.B. Foster is trading at $26.86 per share, or 13x forward P/E. Dive into our free research report to see why there are better opportunities than FSTR.
Two Stocks to Watch:
Moelis (MC)
Rolling One-Year Beta: 1.60
Founded in 2007 by veteran banker Ken Moelis during the lead-up to the financial crisis, Moelis & Company (NYSE: MC) is an independent investment bank that provides strategic and financial advisory services to corporations, financial sponsors, governments, and sovereign wealth funds.
Why Do We Watch MC?
- Annual revenue growth of 31.7% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 86.4% over the last two years outstripped its revenue performance
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Moelis’s stock price of $72.74 implies a valuation ratio of 28.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Shift4 (FOUR)
Rolling One-Year Beta: 1.62
Starting as a payment gateway provider in 1999 and now processing over $200 billion in annual payment volume, Shift4 Payments (NYSE: FOUR) provides integrated payment processing solutions and software that help businesses accept and manage transactions across in-store, online, and mobile channels.
Why Will FOUR Outperform?
- Annual revenue growth of 27.4% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 58.9% outpaced its revenue gains
At $81.32 per share, Shift4 trades at 16.6x 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
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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 Tecnoglass (+1,754% 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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