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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here is one volatile stock with massive upside potential and two best left to the gamblers.
Two Stocks to Sell:
onsemi (ON)
Rolling One-Year Beta: 1.78
Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ:ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
Why Is ON Not Exciting?
- Annual sales declines of 10.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Forecasted revenue decline of 9.7% for the upcoming 12 months implies demand will fall even further
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 13.4% for the last two years
onsemi’s stock price of $60.81 implies a valuation ratio of 22.1x forward P/E. Read our free research report to see why you should think twice about including ON in your portfolio.
Vishay Precision (VPG)
Rolling One-Year Beta: 1.19
Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE:VPG) operates as a global provider of precision measurement and sensing technologies.
Why Do We Steer Clear of VPG?
- Annual sales declines of 9.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Efficiency has decreased over the last five years as its operating margin fell by 6.3 percentage points
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 22.5% annually while its revenue grew
At $28.02 per share, Vishay Precision trades at 23.2x forward P/E. To fully understand why you should be careful with VPG, check out our full research report (it’s free).
One Stock to Watch:
Montrose (MEG)
Rolling One-Year Beta: 1.08
Founded to protect a tree-lined two-lane road, Montrose (NYSE:MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.
Why Are We Fans of MEG?
- Annual revenue growth of 15.3% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 146% annually
- Free cash flow margin expanded by 6.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Montrose is trading at $21.94 per share, or 8.6x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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