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 Stock to Sell:
MarineMax (HZO)
Rolling One-Year Beta: 1.62
Appropriately headquartered in Clearwater, Florida, MarineMax (NYSE:HZO) sells boats, yachts, and other marine products.
Why Is HZO Risky?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Earnings per share have dipped by 62.2% annually over the past three years, which is concerning because stock prices follow EPS over the long term
- High net-debt-to-EBITDA ratio of 11× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $28.40 per share, MarineMax trades at 28.4x forward P/E. If you’re considering HZO for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Monolithic Power Systems (MPWR)
Rolling One-Year Beta: 1.75
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 Top Pick?
- Annual revenue growth of 27% over the last five years was superb and indicates its market share increased during this cycle
- Free cash flow margin increased by 8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- ROIC punches in at 43.5%, illustrating management’s expertise in identifying profitable investments
Monolithic Power Systems is trading at $1,158 per share, or 55.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Old National Bank (ONB)
Rolling One-Year Beta: 1.12
Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ:ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.
Why Are We Positive On ONB?
- Market share has increased this cycle as its 28.1% annual net interest income growth over the last five years was exceptional
- Market share will likely rise over the next 12 months as its expected net interest income growth of 17.6% is robust
- Productivity and efficiency ratio profits are expected to increase next year as some fixed cost leverage kicks in
Old National Bank’s stock price of $24.37 implies a valuation ratio of 1.1x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 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.