2 Volatile Stocks with Impressive Fundamentals and 1 Facing Headwinds

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 are two volatile stocks that could reward patient investors and one that could just as easily collapse.

One Stock to Sell:

Perma-Fix (PESI)

Rolling One-Year Beta: 1.38

Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ:PESI) provides environmental waste treatment services.

Why Do We Avoid PESI?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 8.1% annually over the last five years
2. 31.6 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
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Perma-Fix is trading at $14.49 per share, or 3.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PESI.

Two Stocks to Buy:

Pure Storage (PSTG)

Rolling One-Year Beta: 1.93

Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE:PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.

Why Will PSTG Beat the Market?

1. ARR trends over the past two years show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 33.1% annually, topping its revenue gains
3. 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

At $98.25 per share, Pure Storage trades at 44.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

Magnite (MGNI)

Rolling One-Year Beta: 1.78

Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ:MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.

Why Do We Love MGNI?

1. Market share has increased this cycle as its 33% annual revenue growth over the last five years was exceptional
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 22.8% outpaced its revenue gains
3. Strong free cash flow margin of 23.3% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety

Magnite’s stock price of $19 implies a valuation ratio of 18.7x forward P/E. 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

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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-small-cap company Comfort Systems (+782% 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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