Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
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 are two volatile stocks that could deliver huge gains and one that might not be worth the risk.
One Stock to Sell:
SiteOne (SITE)
Rolling One-Year Beta: 1.31
Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE: SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.
Why Are We Wary of SITE?
- 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
- Earnings per share fell by 12.2% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Diminishing returns on capital suggest its earlier profit pools are drying up
SiteOne is trading at $143.24 per share, or 34.5x forward P/E. If you’re considering SITE for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Trane Technologies (TT)
Rolling One-Year Beta: 1.21
With low-pressure heating systems as its first product, Trane (NYSE: TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.
Why Is TT a Good Business?
- Annual revenue growth of 11.1% over the past two years was outstanding, reflecting market share gains this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 22.7% to outpace its revenue gains
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its rising returns show it’s making even more lucrative bets
Trane Technologies’s stock price of $415.60 implies a valuation ratio of 30.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Pathward Financial (CASH)
Rolling One-Year Beta: 1.10
Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ: CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options.
Why Should You Buy CASH?
- Annual net interest income growth of 13.7% over the past five years was outstanding, reflecting market share gains this cycle
- Differentiated product suite leads to a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds result in a best-in-class net interest margin of 6.6%
- Share repurchases over the last two years enabled its annual earnings per share growth of 16.3% to outpace its revenue gains
At $77.89 per share, Pathward Financial trades at 2.2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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 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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