2 Volatile Stocks with Competitive Advantages and 1 to Question

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.

Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. 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:

Sanmina (SANM)

Rolling One-Year Beta: 1.63

Founded in 1980, Sanmina (NASDAQ:SANM) is an electronics manufacturing services company offering end-to-end solutions for various industries.

Why Are We Out on SANM?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.2% annually over the last two years
2. Gross margin of 8.2% reflects its high production costs
3. Earnings per share have dipped by 4.2% annually over the past two years, which is concerning because stock prices follow EPS over the long term

At $104.54 per share, Sanmina trades at 15.5x forward P/E. If you’re considering SANM for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Monolithic Power Systems (MPWR)

Rolling One-Year Beta: 2.14

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 Do We Love MPWR?

1. Annual revenue growth of 13.1% over the last two years was superb and indicates its market share increased during this cycle
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
3. ROIC punches in at 45.7%, illustrating management’s expertise in identifying profitable investments

Monolithic Power Systems is trading at $712 per share, or 41.7x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Trupanion (TRUP)

Rolling One-Year Beta: 1.15

Born from a vision to help pet owners avoid economic euthanasia when faced with expensive veterinary bills, Trupanion (NASDAQ:TRUP) provides medical insurance for cats and dogs through data-driven, vertically-integrated products priced specifically for each pet's unique characteristics.

Why Should TRUP Be on Your Watchlist?

1. Impressive 17.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 94.6% outpaced its revenue gains
3. Impressive 14.9% annual book value per share growth over the last five years indicates it’s building equity value this cycle

Trupanion’s stock price of $50.26 implies a valuation ratio of 6.2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.