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. That said, here are two volatile stocks that could reward patient investors and one best left to the gamblers.
One Stock to Sell:
Johnson Controls (JCI)
Rolling One-Year Beta: 1.17
Founded after patenting the electric room thermostat, Johnson Controls (NYSE: JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.
Why Do We Think Twice About JCI?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Earnings per share lagged its peers over the last two years as they only grew by 3.8% annually
- Underwhelming 7.2% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
Johnson Controls’s stock price of $116.82 implies a valuation ratio of 25x forward P/E. Dive into our free research report to see why there are better opportunities than JCI.
Two Stocks to Buy:
monday.com (MNDY)
Rolling One-Year Beta: 2.01
With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com (NASDAQ: MNDY) is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces.
Why Are We Bullish on MNDY?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Software is difficult to replicate at scale and leads to a best-in-class gross margin of 89.2%
- Robust free cash flow margin of 29% gives it many options for capital deployment
At $150.80 per share, monday.com trades at 5.9x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Raymond James (RJF)
Rolling One-Year Beta: 1.18
Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE: RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.
Why Will RJF Outperform?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 12% annual sales growth over the last five years
- Share buybacks propelled its annual earnings per share growth to 21.2%, which outperformed its revenue gains over the last five years
- Impressive 14.4% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle
Raymond James is trading at $162.83 per share, or 13.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. 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-small-cap company Exlservice (+354% 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.
