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 are two volatile stocks that could reward patient investors and one that might not be worth the risk.
One Stock to Sell:
Equitable Holdings (EQH)
Rolling One-Year Beta: 1.41
Tracing its roots back to 1859 as one of America's oldest financial institutions, Equitable Holdings (NYSE: EQH) provides retirement planning, asset management, and life insurance products through its two main franchises, Equitable and AllianceBernstein.
Why Are We Wary of EQH?
- The company has faced growth challenges as its 1.3% annual revenue increases over the last five years fell short of other insurance companies
- Costs have risen faster than its revenue over the last two years, causing its pre-tax profit margin to decline by 15 percentage points
- Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 178% annually over the last five years
At $54.03 per share, Equitable Holdings trades at 6.7x forward P/E. If you’re considering EQH for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Western Digital (WDC)
Rolling One-Year Beta: 2.30
Founded in 1970 by a Motorola employee, Western Digital (NASDAQ: WDC) is a leading producer of hard disk drives, SSDs and flash memory.
Why Are We Positive on WDC?
- Estimated revenue growth of 48.3% for the next 12 months implies demand will accelerate from its two-year trend
- Operating margin improved by 21.7 percentage points over the last five years as it eliminated redundant costs
- Free cash flow margin increased by 23.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Western Digital’s stock price of $423.23 implies a valuation ratio of 20.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Alphabet (GOOGL)
Rolling One-Year Beta: 1.70
Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ: GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.
What Makes GOOGL Stand Out?
- Alphabet’s dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin.
- The company’s profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube.
- Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term.
Alphabet is trading at $346.54 per share, or 25.7x forward price-to-earnings. Is now the right 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.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
