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. That said, here are two volatile stocks that could reward patient investors and one best left to the gamblers.
One Stock to Sell:
Advanced Energy (AEIS)
Rolling One-Year Beta: 1.90
Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ:AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.
Why Is AEIS Risky?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 5.9% annually over the last two years
- Sales were less profitable over the last two years as its earnings per share fell by 9.9% annually, worse than its revenue declines
- Eroding returns on capital suggest its historical profit centers are aging
Advanced Energy’s stock price of $157.44 implies a valuation ratio of 28.1x forward P/E. Read our free research report to see why you should think twice about including AEIS in your portfolio.
Two Stocks to Watch:
ServiceNow (NOW)
Rolling One-Year Beta: 1.52
Built on a single code base that processes over 4 billion workflow transactions daily, ServiceNow (NYSE:NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
Why Should You Buy NOW?
- Current remaining performance obligations (cRPO) have averaged 22.9% growth over the last year, showing it has a pipeline of unfulfilled contracts that will support revenue in the future
- Healthy operating margin of 13.3% shows it’s a well-run company with efficient processes, and its profits increased over the last year as it scaled
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
ServiceNow is trading at $929.46 per share, or 13.6x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Griffon (GFF)
Rolling One-Year Beta: 1.14
Initially in the defense industry, Griffon (NYSE:GFF) is a now diversified company specializing in home improvement, professional equipment, and building products.
Why Could GFF Be a Winner?
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 28.8% annually, topping its revenue gains
- Free cash flow margin increased by 13 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $77.50 per share, Griffon trades at 12.6x 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
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. 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-small-cap company Comfort Systems (+782% 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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