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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here is one volatile stock that could reward patient investors and two that might not be worth the risk.
Two Stocks to Sell:
FormFactor (FORM)
Rolling One-Year Beta: 1.99
With customers across the foundry and fabless markets, FormFactor (NASDAQ: FORM) is a US-based provider of test and measurement technologies for semiconductors.
Why Does FORM Give Us Pause?
- Sales trends were unexciting over the last five years as its 2.4% annual growth was below the typical semiconductor company
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 5.5% annually
- Weak free cash flow margin of 3.7% has deteriorated further over the last five years as its investments increased
FormFactor’s stock price of $55.35 implies a valuation ratio of 38.8x forward P/E. Read our free research report to see why you should think twice about including FORM in your portfolio.
Brunswick (BC)
Rolling One-Year Beta: 1.40
Formerly known as Brunswick-Balke-Collender Company, Brunswick (NYSE: BC) is a designer and manufacturer of recreational marine products, including boats, engines, and marine parts.
Why Do We Avoid BC?
- Annual sales declines of 11.5% for the past two years show its products and services struggled to connect with the market
- Projected 6.3 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Eroding returns on capital suggest its historical profit centers are aging
At $66.04 per share, Brunswick trades at 16.6x forward P/E. Check out our free in-depth research report to learn more about why BC doesn’t pass our bar.
One Stock to Watch:
Wabtec (WAB)
Rolling One-Year Beta: 1.20
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.
Why Could WAB Be a Winner?
- Operating margin improvement of 6.5 percentage points over the last five years demonstrates its ability to scale efficiently
- Share repurchases over the last two years enabled its annual earnings per share growth of 22.6% to outpace its revenue gains
- Robust free cash flow margin of 11.6% gives it many options for capital deployment
Wabtec is trading at $206.20 per share, or 20.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
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-small-cap company Exlservice (+354% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
