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 with massive upside potential and two that might not be worth the risk.
Two Stocks to Sell:
Entegris (ENTG)
Rolling One-Year Beta: 2.07
With fabs representing the company’s largest customer type, Entegris (NASDAQ: ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.
Why Do We Steer Clear of ENTG?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.5% annually over the last two years
- Sales are projected to be flat over the next 12 months and imply weak demand
- 8.9 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Entegris’s stock price of $78 implies a valuation ratio of 20.6x forward P/E. If you’re considering ENTG for your portfolio, see our FREE research report to learn more.
Applied Industrial (AIT)
Rolling One-Year Beta: 1.16
Formerly called The Ohio Ball Bearing Company, Applied Industrial (NYSE: AIT) distributes industrial products–everything from power tools to industrial valves–and services to a wide variety of industries.
Why Are We Cautious About AIT?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Projected sales growth of 5% for the next 12 months suggests sluggish demand
- Free cash flow margin has shown no improvement over the last five years
At $227.43 per share, Applied Industrial trades at 21.3x forward P/E. Read our free research report to see why you should think twice about including AIT in your portfolio.
One Stock to Buy:
Sarepta Therapeutics (SRPT)
Rolling One-Year Beta: 1.23
Pioneering treatments for a devastating childhood muscle-wasting disease that primarily affects boys, Sarepta Therapeutics (NASDAQ: SRPT) develops and commercializes RNA-targeted therapies and gene therapies for rare genetic disorders, primarily Duchenne muscular dystrophy.
Why Will SRPT Beat the Market?
- Annual revenue growth of 51.3% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 38.8% annually over the last five years, massively outpacing its peers
- Negative free cash flow margin has improved over the last five years, showing the company is one step closer to financial self-sufficiency
Sarepta Therapeutics is trading at $38.78 per share, or 3.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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.
