1 Volatile Stock to Own for Decades and 2 We Find Risky

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. Keeping that in mind, here is one volatile stock that could reward patient investors and two that might not be worth the risk.

Two Stocks to Sell:

Custom Truck One Source (CTOS)

Rolling One-Year Beta: 1.78

Inspired by a family gas station, Custom Truck One Source (NYSE:CTOS) is a distributor of trucks and heavy equipment.

Why Does CTOS Give Us Pause?

1. 4.1% annual revenue growth over the last two years was slower than its industrials peers
2. Earnings per share have contracted by 52% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. 24.4 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Custom Truck One Source is trading at $6.39 per share, or 212.7x forward P/E. Check out our free in-depth research report to learn more about why CTOS doesn’t pass our bar.

Caterpillar (CAT)

Rolling One-Year Beta: 1.21

With its iconic yellow machinery working on construction sites, Caterpillar (NYSE:CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.

Why Is CAT Not Exciting?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Projected sales growth of 5% for the next 12 months suggests sluggish demand
3. Earnings per share lagged its peers over the last two years as they only grew by 2.7% annually

Caterpillar’s stock price of $520.28 implies a valuation ratio of 27.8x forward P/E. Read our free research report to see why you should think twice about including CAT in your portfolio.

One Stock to Buy:

Piper Sandler (PIPR)

Rolling One-Year Beta: 1.63

Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE:PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.

Why Should You Buy PIPR?

1. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 25.6% annually, topping its revenue gains
2. Balance sheet strength has increased this cycle as its 13.2% annual tangible book value per share growth over the last five years was exceptional
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

At $339.47 per share, Piper Sandler trades at 22x 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.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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 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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