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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. 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:
Sensata Technologies (ST)
Rolling One-Year Beta: 1.86
Originally a temperature sensor control maker and a subsidiary of Texas Instruments for 60 years, Sensata Technology Holdings (NYSE: ST) is a leading supplier of analog sensors used in industrial and transportation applications, best known for its dominant position in the tire pressure monitoring systems in cars.
Why Do We Think ST Will Underperform?
- Sales tumbled by 4.8% annually over the last two years, showing market trends are working against its favor during this cycle
- Estimated sales growth of 2.1% for the next 12 months is soft and implies weaker demand
- Gross margin of 30.2% is below its competitors, leaving less money to invest in areas like marketing and R&D
At $34.62 per share, Sensata Technologies trades at 9.8x forward P/E. Check out our free in-depth research report to learn more about why ST doesn’t pass our bar.
Two Stocks to Watch:
Confluent (CFLT)
Rolling One-Year Beta: 1.68
Built by the original creators of Apache Kafka, the popular open-source messaging system, Confluent (NASDAQ:CFLT) provides a data infrastructure platform that enables organizations to connect their applications, systems, and data layers around real-time data streams.
Why Are We Positive On CFLT?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 26.1% over the last year
- Projected revenue growth of 16.7% for the next 12 months suggests its momentum from the last two years will persist
- Adequate gross margin of 74.1% gives it sufficient room to spend on marketing and product development
Confluent’s stock price of $30.53 implies a valuation ratio of 8.1x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Quanta (PWR)
Rolling One-Year Beta: 1.36
A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Is PWR a Good Business?
- Sales pipeline is in good shape as its backlog averaged 16.7% growth over the past two years
- Estimated revenue growth of 12.7% for the next 12 months implies its momentum over the last two years will continue
- Earnings per share have massively outperformed its peers over the last two years, increasing by 24.3% annually
Quanta is trading at $472.95 per share, or 40.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.