1 Volatile Stock Worth Your Attention and 2 We 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.

At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. 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:

Advanced Energy (AEIS)

Rolling One-Year Beta: 1.94

Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ:AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.

Why Should You Sell AEIS?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 3.1 percentage points
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $217.64 per share, Advanced Energy trades at 29.7x forward P/E. To fully understand why you should be careful with AEIS, check out our full research report (it’s free for active Edge members).

Fortune Brands (FBIN)

Rolling One-Year Beta: 1.11

Targeting a wide customer base of residential and commercial customers, Fortune Brands (NYSE:FBIN) makes plumbing, security, and outdoor living products.

Why Do We Think FBIN Will Underperform?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 10.4 percentage points
3. Incremental sales over the last five years were much less profitable as its earnings per share fell by 5.3% annually while its revenue grew

Fortune Brands is trading at $51.20 per share, or 12.8x forward P/E. Read our free research report to see why you should think twice about including FBIN in your portfolio.

One Stock to Buy:

Robinhood (HOOD)

Rolling One-Year Beta: 3.04

With a mission to democratize finance, Robinhood (NASDAQ:HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.

Why Are We Bullish on HOOD?

1. Customer spending is rising as the company has focused on monetization over the last two years, leading to 47.7% annual growth in its average revenue per user
2. Additional sales over the last three years increased its profitability as the 58.5% annual growth in its earnings per share outpaced its revenue
3. HOOD is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy

Robinhood’s stock price of $117.58 implies a valuation ratio of 34.3x forward EV/EBITDA. Is now the time to initiate a position? 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 5 Strong Momentum 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.