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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here are two volatile stocks that could reward patient investors and one that could just as easily collapse.
One Industrials Stock to Sell:
Avis Budget Group (CAR)
Rolling One-Year Beta: 2.86
The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ:CAR) is a provider of car rental and mobility solutions.
Why Do We Think CAR Will Underperform?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Diminishing returns on capital suggest its earlier profit pools are drying up
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $107.51 per share, Avis Budget Group trades at 11.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than CAR.
Two Industrials Stocks to Watch:
Construction Partners (ROAD)
Rolling One-Year Beta: 1.44
Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.
Why Should You Buy ROAD?
- Impressive 40.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 43.7% over the last two years outstripped its revenue performance
- Free cash flow margin jumped by 8.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Construction Partners’s stock price of $87.44 implies a valuation ratio of 24.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Advanced Energy (AEIS)
Rolling One-Year Beta: 1.05
Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ:AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.
Why Do We Like AEIS?
- Impressive 16.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 36.8%
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 46.8% annually
Advanced Energy is trading at $293.92 per share, or 20.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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.