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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here are two volatile stocks that could reward patient investors and one that might not be worth the risk.
One Stock to Sell:
Bel Fuse (BELFA)
Rolling One-Year Beta: 1.57
Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ:BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.
Why Does BELFA Worry Us?
- Annual sales declines of 1.5% for the past two years show its products and services struggled to connect with the market during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
At $152.76 per share, Bel Fuse trades at 22.6x forward P/E. If you’re considering BELFA for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Pinterest (PINS)
Rolling One-Year Beta: 1.50
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Why Will PINS Outperform?
- Monthly Active Users have grown by 11.2% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Excellent EBITDA margin of 28.3% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
- Robust free cash flow margin of 27.4% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
Pinterest is trading at $27.65 per share, or 13.6x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
StepStone Group (STEP)
Rolling One-Year Beta: 1.54
Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ:STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.
Why Should You Buy STEP?
- Impressive 32.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 41.4% annually, topping its revenue gains
StepStone Group’s stock price of $65.98 implies a valuation ratio of 28.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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