1 Volatile Stock for Long-Term Investors and 2 We Brush Off

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. Keeping that in mind, here is one volatile stock with massive upside potential and two that might not be worth the risk.

Rolling One-Year Beta: 1.60

With a unique origin story where the company actually started as an antique shop, Potbelly (NASDAQ:PBPB) today is a chain known for its toasty sandwiches.

Why Is PBPB Risky?

2.1% annual revenue growth over the last six years was slower than its restaurant peers

Modest revenue base of $469.1 million gives it less fixed cost leverage and fewer distribution channels than larger companies

Negative returns on capital show that some of its growth strategies have backfired

Potbelly is trading at $12.94 per share, or 21x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than PBPB.

Rolling One-Year Beta: 1.40

Founded in 1917, Parker Hannifin (NYSE:PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets.

Why Are We Wary of PH?

Sizable revenue base leads to growth challenges as its 2% annual revenue increases over the last two years fell short of other industrials companies

Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion

Projected sales growth of 3.9% for the next 12 months suggests sluggish demand

At $759.85 per share, Parker-Hannifin trades at 26.1x forward P/E. If you’re considering PH for your portfolio, see our FREE research report to learn more.

Rolling One-Year Beta: 1.37

Recognizable by its iconic green logo and the slogan "Don't leave home without it," American Express (NYSE:AXP) is a global payments company that issues credit and charge cards, processes merchant transactions, and offers travel and lifestyle benefits to consumers and businesses.

Why Will AXP Beat the Market?

Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Annual tangible book value per share growth of 13.1% over the last two years was superb and indicates its capital strength increased during this cycle

Industry-leading 32.1% return on equity demonstrates management’s skill in finding high-return investments

American Express’s stock price of $330.78 implies a valuation ratio of 20.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

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 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-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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