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 best left to the gamblers.
Two Stocks to Sell:
The RealReal (REAL)
Rolling One-Year Beta: 1.77
Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.
Why Are We Wary of REAL?
- Decision to emphasize platform growth over monetization has contributed to 5.5% annual declines in its average revenue per user
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $5.34 per share, The RealReal trades at 21.3x forward EV/EBITDA. Check out our free in-depth research report to learn more about why REAL doesn’t pass our bar.
Parker-Hannifin (PH)
Rolling One-Year Beta: 1.32
Founded in 1917, Parker Hannifin (NYSE: PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets.
Why Do We Think Twice About PH?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Estimated sales growth of 1.9% for the next 12 months implies demand will slow from its two-year trend
- Free cash flow margin shrank by 2.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Parker-Hannifin is trading at $719.15 per share, or 25.3x forward P/E. To fully understand why you should be careful with PH, check out our full research report (it’s free).
One Stock to Watch:
OSI Systems (OSIS)
Rolling One-Year Beta: 1.51
With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems (NASDAQ: OSIS) designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications.
Why Does OSIS Stand Out?
- Market share has increased this cycle as its 18.5% annual revenue growth over the last two years was exceptional
- Earnings per share grew by 27.4% annually over the last two years and trumped its peers
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
OSI Systems’s stock price of $232.51 implies a valuation ratio of 23.2x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% 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
