2 Volatile Stocks Worth Investigating and 1 We Avoid
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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here are two volatile stocks that could reward patient investors and one that might not be worth the risk.
Rolling One-Year Beta: 1.55
Helping create one of the most memorable moments for the iconic “Jurassic Park” film, Gates (NYSE:GTES) offers power transmission and fluid transfer equipment for various industries.
Why Does GTES Give Us Pause?
Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
Estimated sales growth of 2.9% for the next 12 months is soft and implies weaker demand
Below-average returns on capital indicate management struggled to find compelling investment opportunities
Gates Industrial Corporation’s stock price of $26.82 implies a valuation ratio of 17x forward P/E. To fully understand why you should be careful with GTES, check out our full research report (it’s free).
Rolling One-Year Beta: 1.86
Originally spun off from networking equipment maker Netgear in 2018, Arlo Technologies (NYSE:ARLO) provides cloud-based smart security devices and subscription services that help consumers and businesses monitor and protect their homes, properties, and loved ones.
Why Could ARLO Be a Winner?
Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
Incremental sales over the last two years have been highly profitable as its earnings per share increased by 120% annually, topping its revenue gains
Free cash flow margin increased by 16.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Arlo Technologies is trading at $12.22 per share, or 16.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Rolling One-Year Beta: 2.34
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ:FLNC) helps store renewable energy sources with battery systems.
Why Is FLNC a Good Business?
Average backlog growth of 18.1% over the past two years shows it has a steady sales pipeline that will drive future orders
Earnings growth has trumped its peers over the last four years as its EPS has compounded at 36.4% annually
Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day
At $20 per share, Fluence Energy trades at 856.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.