1 Volatile Stock for Long-Term Investors and 2 Facing Headwinds

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.

These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here is one volatile stock that could deliver huge gains and two that might not be worth the risk.

Two Stocks to Sell:

ACV Auctions (ACVA)

Rolling One-Year Beta: 1.43

Founded in 2014, ACV Auctions (NASDAQ:ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.

Why Do We Think Twice About ACVA?

1. Gross margin of 27.4% reflects its high servicing costs
2. Excessive marketing spend signals little organic demand and traction for its platform
3. Poor free cash flow margin of 4.1% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

At $7.74 per share, ACV Auctions trades at 19.2x forward EV/EBITDA. If you’re considering ACVA for your portfolio, see our FREE research report to learn more.

Benchmark (BHE)

Rolling One-Year Beta: 1.38

Operating as a critical behind-the-scenes partner for complex technology products since 1979, Benchmark Electronics (NYSE:BHE) provides advanced manufacturing, engineering, and technology solutions for original equipment manufacturers across aerospace, medical, industrial, and technology sectors.

Why Is BHE Not Exciting?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 5.1% annually over the last two years
2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.4% annually
3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 0.9% for the last five years

Benchmark’s stock price of $44.52 implies a valuation ratio of 18.2x forward P/E. To fully understand why you should be careful with BHE, check out our full research report (it’s free for active Edge members).

One Stock to Watch:

Intuitive Surgical (ISRG)

Rolling One-Year Beta: 1.31

Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ:ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.

Why Is ISRG Interesting?

1. Products are reaching more customers as its system placement averaged 12.7% growth over the past two years
2. Estimated revenue growth of 14.2% for the next 12 months implies its momentum over the last two years will continue
3. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 20.9% annually

Intuitive Surgical is trading at $572.84 per share, or 60.5x 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

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. 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 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-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.