A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south. While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here is one volatile stock that could reward patient investors and two that might not be worth the risk.
Two Stocks to Sell:
Western Digital (WDC)
Rolling One-Year Beta: 2.35
Founded in 1970 by a Motorola employee, Western Digital (NASDAQ: WDC) is a leading producer of hard disk drives, SSDs and flash memory.
Why Are We Hesitant About WDC?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.4% annually over the last five years
- High input costs result in an inferior gross margin of 14.9% that must be offset through higher volumes
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $147.80 per share, Western Digital trades at 19.2x forward P/E. Dive into our free research report to see why there are better opportunities than WDC.
Ingram Micro (INGM)
Rolling One-Year Beta: 1.35
Operating as the crucial link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE: INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics expertise.
Why Are We Cautious About INGM?
- Annual sales growth of 2.2% over the last five years lagged behind its business services peers as its large revenue base made it difficult to generate incremental demand
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 7.8% annually while its revenue grew
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.1% for the last five years
Ingram Micro’s stock price of $22.23 implies a valuation ratio of 6.9x forward P/E. Check out our free in-depth research report to learn more about why INGM doesn’t pass our bar.
One Stock to Watch:
Deckers (DECK)
Rolling One-Year Beta: 1.39
Established in 1973, Deckers (NYSE: DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands.
Why Does DECK Stand Out?
- 18.8% annual revenue growth over the last five years surpassed the sector average as its brand resonated with consumers
- Share repurchases over the last five years enabled its annual earnings per share growth of 29.8% to outpace its revenue gains
- Rising returns on capital show management is finding more attractive investment opportunities
Deckers is trading at $79.31 per share, or 12.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at 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-micro-cap company Kadant (+351% 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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