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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here is one volatile stock that could deliver huge gains and two that could just as easily collapse.
Two Stocks to Sell:
Resideo (REZI)
Rolling One-Year Beta: 1.54
Resideo Technologies, Inc. (NYSE: REZI) is a manufacturer and distributor of technology-driven products and solutions for home comfort, energy management, water management, and safety and security.
Why Is REZI Not Exciting?
- Estimated sales growth of 2.9% for the next 12 months implies demand will slow from its two-year trend
- Free cash flow margin dropped by 22.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Eroding returns on capital suggest its historical profit centers are aging
At $29.63 per share, Resideo trades at 12.2x forward P/E. Read our free research report to see why you should think twice about including REZI in your portfolio.
Flex (FLEX)
Rolling One-Year Beta: 1.84
Originally known as Flextronics until its 2016 rebranding, Flex (NASDAQ: FLEX) is a global manufacturing partner that designs, engineers, and builds products for companies across industries from medical devices to solar trackers.
Why Are We Hesitant About FLEX?
- Sales tumbled by 3.1% annually over the last two years, showing market trends are working against its favor during this cycle
- Poor free cash flow margin of 2.8% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Eroding returns on capital suggest its historical profit centers are aging
Flex’s stock price of $58.50 implies a valuation ratio of 18.1x forward P/E. To fully understand why you should be careful with FLEX, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Toast (TOST)
Rolling One-Year Beta: 1.39
Born from the frustrations of three friends waiting too long for their restaurant bill, Toast (NYSE: TOST) provides a cloud-based digital technology platform with software, payment processing, and hardware solutions built specifically for restaurants.
Why Could TOST Be a Winner?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Projected revenue growth of 21.1% for the next 12 months suggests its momentum from the last two years will persist
Toast is trading at $34.59 per share, or 3.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 6 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 Kadant (+351% 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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