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 are two volatile stocks that could reward patient investors and one that might not be worth the risk.
One Stock to Sell:
Fortrea (FTRE)
Rolling One-Year Beta: 1.61
Spun off from Labcorp in 2023 to focus exclusively on clinical research services, Fortrea (NASDAQ:FTRE) is a contract research organization that helps pharmaceutical, biotech, and medical device companies develop and bring their products to market through clinical trials and support services.
Why Are We Bearish on FTRE?
- Annual sales declines of 3% for the past five years show its products and services struggled to connect with the market during this cycle
- Negative returns on capital show that some of its growth strategies have backfired, and its shrinking returns suggest its past profit sources are losing steam
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Fortrea’s stock price of $19.99 implies a valuation ratio of 20.6x forward P/E. Dive into our free research report to see why there are better opportunities than FTRE.
Two Stocks to Watch:
VSE Corporation (VSEC)
Rolling One-Year Beta: 2.66
With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ:VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.
Why Is VSEC a Good Business?
- Impressive 28.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Exciting sales outlook for the upcoming 12 months calls for 54.7% growth, an acceleration from its two-year trend
- Earnings per share grew by 24.3% annually over the last two years, massively outpacing its peers
At $167.29 per share, VSE Corporation trades at 21.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Boeing (BA)
Rolling One-Year Beta: 1.54
One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.
Why Is BA Interesting?
- Products are reaching more customers as its unit sales averaged 60.4% growth over the past two years
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 48.1% outpaced its revenue gains
Boeing is trading at $193.80 per share, or 181.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.