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 reward patient investors and two best left to the gamblers.
Two Stocks to Sell:
Dillard's (DDS)
Rolling One-Year Beta: 1.40
With stores located largely in the Southern and Western US, Dillard’s (NYSE:DDS) is a department store chain that sells clothing, cosmetics, accessories, and home goods.
Why Does DDS Fall Short?
- Absence of new stores indicates weak demand as management focuses on improving existing location performance
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Earnings per share have contracted by 9.5% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
Dillard's is trading at $678.88 per share, or 23.7x forward P/E. If you’re considering DDS for your portfolio, see our FREE research report to learn more.
Textron (TXT)
Rolling One-Year Beta: 1.22
Listed on the NYSE in 1947, Textron (NYSE:TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.
Why Are We Hesitant About TXT?
- Annual sales growth of 3% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Free cash flow margin shrank by 5.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $87.93 per share, Textron trades at 13.1x forward P/E. Read our free research report to see why you should think twice about including TXT in your portfolio.
One Stock to Buy:
Monolithic Power Systems (MPWR)
Rolling One-Year Beta: 1.80
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Why Is MPWR a Good Business?
- Annual revenue growth of 27.9% over the last five years was superb and indicates its market share increased during this cycle
- Earnings per share grew by 29.1% annually over the last five years and trumped its peers
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Monolithic Power Systems’s stock price of $945.70 implies a valuation ratio of 47.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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-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.