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 is one volatile stock with massive upside potential and two that could just as easily collapse.
Two Stocks to Sell:
Amkor (AMKR)
Rolling One-Year Beta: 2.17
Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ: AMKR) provides outsourced packaging and testing for semiconductors.
Why Is AMKR Risky?
- Sales tumbled by 5.6% annually over the last two years, showing market trends are working against its favor during this cycle
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 14.6%
At $15.99 per share, Amkor trades at 7.8x forward price-to-earnings. Check out our free in-depth research report to learn more about why AMKR doesn’t pass our bar.
XPO (XPO)
Rolling One-Year Beta: 1.58
Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE: XPO) is a transportation company specializing in expedited shipping services.
Why Do We Avoid XPO?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 13.5% annually over the last five years
- Earnings per share have dipped by 3.9% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.7 percentage points
XPO is trading at $95.05 per share, or 22.5x forward price-to-earnings. To fully understand why you should be careful with XPO, check out our full research report (it’s free).
One Stock to Watch:
Vita Coco (COCO)
Rolling One-Year Beta: 1.25
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.
Why Should COCO Be on Your Watchlist?
- Products are reaching more households as its unit sales averaged 7.7% growth over the past two years
- Earnings per share grew by 27.3% annually over the last three years, massively outpacing its peers
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are climbing as it finds even more attractive growth opportunities
Vita Coco’s stock price of $32.01 implies a valuation ratio of 26.3x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
