Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here are two volatile stocks that could reward patient investors and one that could just as easily collapse.
One Stock to Sell:
BeautyHealth (SKIN)
Rolling One-Year Beta: 1.57
Operating in the emerging beauty health category, the appropriately named BeautyHealth (NASDAQ:SKIN) is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin.
Why Is SKIN Risky?
- Products aren't resonating with the market as its revenue declined by 1.6% annually over the last three years
- Modest revenue base of $310.1 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Suboptimal cost structure is highlighted by its history of operating margin losses
BeautyHealth is trading at $1.48 per share, or 7.2x forward EV-to-EBITDA. To fully understand why you should be careful with SKIN, check out our full research report (it’s free for active Edge members).
Two Stocks to Buy:
AMD (AMD)
Rolling One-Year Beta: 1.82
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Is AMD a Top Pick?
- Annual revenue growth of 31.1% over the last five years was superb and indicates its market share increased during this cycle
- Exciting sales outlook for the upcoming 12 months calls for 23% growth, an acceleration from its two-year trend
- Earnings per share have massively outperformed its peers over the last five years, increasing by 32% annually
AMD’s stock price of $259.42 implies a valuation ratio of 51.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
American Superconductor (AMSC)
Rolling One-Year Beta: 2.07
Founded in 1987, American Superconductor (NASDAQ:AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
Why Are We Backing AMSC?
- Annual revenue growth of 49.8% over the last two years was superb and indicates its market share increased during this cycle
- Free cash flow turned positive over the last five years, indicating the company has passed a significant test
- Historical investments are beginning to pay off as its returns on capital are growing
At $58.34 per share, American Superconductor trades at 88.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum 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-micro-cap company Kadant (+351% 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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