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 are two volatile stocks that could reward patient investors and one that may be too risky for most investors.
One Stock to Sell:
Azenta (AZTA)
Rolling One-Year Beta: 1.52
Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ:AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.
Why Do We Avoid AZTA?
- Sales tumbled by 3.5% annually over the last two years, showing market trends are working against it during this cycle
- Earnings per share have dipped by 28.6% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Cash-burning history makes us doubt the long-term viability of its business model
Azenta’s stock price of $37.18 implies a valuation ratio of 69.4x forward P/E. To fully understand why you should be careful with AZTA, check out our full research report (it’s free).
Two Stocks to Watch:
Comfort Systems (FIX)
Rolling One-Year Beta: 1.17
Formed through the merger of 12 companies, Comfort Systems (NYSE:FIX) provides mechanical and electrical contracting services.
Why Is FIX a Top Pick?
- Backlog has averaged 56% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Free cash flow margin expanded by 15.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are climbing as management makes more lucrative bets
At $1,510 per share, Comfort Systems trades at 30.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Redwire (RDW)
Rolling One-Year Beta: 4.36
Based in Jacksonville, Florida, Redwire (NYSE:RDW) is a provider of systems and components used in space infrastructure.
Why Do We Like RDW?
- Annual revenue growth of 20.8% over the last two years was superb and indicates its market share increased during this cycle
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Redwire is trading at $8.46 per share, or 3.9x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.