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. That said, here is one volatile stock with massive upside potential and two best left to the gamblers.
Two Stocks to Sell:
Allient (ALNT)
Rolling One-Year Beta: 1.67
Founded in 1962, Allient (NASDAQ: ALNT) develops and manufactures precision and specialty-controlled motion components and systems.
Why Are We Wary of ALNT?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.2% annually over the last two years
- Performance over the past two years was negatively impacted by new share issuances as its earnings per share dropped by 5.7% annually, worse than its revenue
- Underwhelming 8.1% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
Allient’s stock price of $53.32 implies a valuation ratio of 21.2x forward P/E. Check out our free in-depth research report to learn more about why ALNT doesn’t pass our bar.
Masimo (MASI)
Rolling One-Year Beta: 1.21
Founded in 1989 to solve the "unsolvable problem" of accurate pulse oximetry during patient movement, Masimo (NASDAQ: MASI) develops and manufactures noninvasive patient monitoring technologies, including its breakthrough pulse oximetry systems that accurately measure blood oxygen levels even during patient movement.
Why Is MASI Not Exciting?
- Sales tumbled by 16.3% annually over the last two years, showing market trends are working against its favor during this cycle
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Masimo is trading at $147.01 per share, or 25.4x forward P/E. Dive into our free research report to see why there are better opportunities than MASI.
One Stock to Watch:
Customers Bancorp (CUBI)
Rolling One-Year Beta: 1.41
Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.
Why Do We Like CUBI?
- Annual net interest income growth of 14.8% over the past five years was outstanding, reflecting market share gains this cycle
- Productivity and efficiency ratio profits are expected to increase next year as some fixed cost leverage kicks in
- Impressive 18.1% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
At $70.06 per share, Customers Bancorp trades at 1.1x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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-small-cap company Exlservice (+354% 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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