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.
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 with massive upside potential and two that could just as easily collapse.
Two Stocks to Sell:
Matrix Service (MTRX)
Rolling One-Year Beta: 1.74
Founded in Oklahoma, Matrix Service (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.
Why Are We Cautious About MTRX?
- Annual sales declines of 10.7% for the past five years show its products and services struggled to connect with the market during this cycle
- Gross margin of 4.2% reflects its high production costs
- Earnings per share decreased by more than its revenue over the last five years, partly because it diluted shareholders
Matrix Service is trading at $15.13 per share, or 20.1x forward P/E. Check out our free in-depth research report to learn more about why MTRX doesn’t pass our bar.
Ziff Davis (ZD)
Rolling One-Year Beta: 1.56
Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ:ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets.
Why Is ZD Risky?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Sales over the last five years were less profitable as its earnings per share fell by 1.7% annually while its revenue was flat
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 15.2 percentage points
Ziff Davis’s stock price of $38.21 implies a valuation ratio of 5.6x forward P/E. If you’re considering ZD for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Qualcomm (QCOM)
Rolling One-Year Beta: 1.44
Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.
Why Are We Fans of QCOM?
- Annual revenue growth of 16.6% over the last five years was superb and indicates its market share increased during this cycle
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $160.46 per share, Qualcomm trades at 13.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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 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-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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