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. That said, here is one volatile stock that could deliver huge gains and two that might not be worth the risk.
Two Stocks to Sell:
NXP Semiconductors (NXPI)
Rolling One-Year Beta: 1.36
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.
Why Does NXPI Give Us Pause?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.3% annually over the last two years
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 10.1 percentage points
At $219.52 per share, NXP Semiconductors trades at 18x forward P/E. Check out our free in-depth research report to learn more about why NXPI doesn’t pass our bar.
Stitch Fix (SFIX)
Rolling One-Year Beta: 2.08
One of the original subscription box companies, Stitch Fix (NASDAQ:SFIX) is an online personal styling and fashion service that curates personalized clothing selections for customers.
Why Is SFIX Risky?
- Number of active clients has disappointed over the past two years, indicating weak demand for its offerings
- Sales were less profitable over the last five years as its earnings per share fell by 8.1% annually, worse than its revenue declines
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Stitch Fix’s stock price of $4.12 implies a valuation ratio of 11.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than SFIX.
One Stock to Watch:
Mirion (MIR)
Rolling One-Year Beta: 1.63
With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE:MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.
Why Are We Fans of MIR?
- Market share has increased this cycle as its 9.4% annual revenue growth over the last three years was exceptional
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 16.8% annually
- Free cash flow margin expanded by 4.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Mirion is trading at $21.44 per share, or 27.6x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 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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