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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here is one volatile stock that could reward patient investors and two that could just as easily collapse.
Two Stocks to Sell:
Owens Corning (OC)
Rolling One-Year Beta: 1.38
Credited with the discovery of fiberglass, Owens Corning (NYSE:OC) supplies building and construction materials to the United States and international markets.
Why Do We Avoid OC?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 13.6 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
Owens Corning’s stock price of $111.57 implies a valuation ratio of 11.2x forward P/E. If you’re considering OC for your portfolio, see our FREE research report to learn more.
Applied Digital (APLD)
Rolling One-Year Beta: 2.82
Pivoting from its origins in cryptocurrency mining to become a key player in the AI infrastructure boom, Applied Digital (NASDAQ:APLD) designs and operates specialized data centers that provide high-performance computing infrastructure for artificial intelligence and blockchain applications.
Why Does APLD Fall Short?
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 83.8% annually
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 54.3 percentage points
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Applied Digital is trading at $32.09 per share, or 78x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than APLD.
One Stock to Buy:
Ares (ARES)
Rolling One-Year Beta: 1.81
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE:ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Why Do We Love ARES?
- Annual revenue growth of 19.2% over the past five years was outstanding, reflecting market share gains this cycle
- Fee-related earnings improved by 33.6% annually over the last five years as it eliminated redundant costs
- Earnings per share grew by 17.9% annually over the last five years and easily exceeded the peer group average
At $176.23 per share, Ares trades at 27.4x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. 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 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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