1 Volatile Stock with Impressive Fundamentals and 2 to Turn Down

Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.

These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here is one volatile stock that could reward patient investors and two best left to the gamblers.

Two Industrials Stocks to Sell:

Rush Enterprises (RUSHA)

Rolling One-Year Beta: 1.07

Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.

Why Do We Avoid RUSHA?

1. Muted 4.8% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Free cash flow margin shrank by 9.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $52.25 per share, Rush Enterprises trades at 12.8x forward price-to-earnings. If you’re considering RUSHA for your portfolio, see our FREE research report to learn more.

Carrier Global (CARR)

Rolling One-Year Beta: 1.45

Founded by the inventor of air conditioning, Carrier Global (NYSE:CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.

Why Should You Dump CARR?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.7 percentage points
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Carrier Global is trading at $59.12 per share, or 19.5x forward price-to-earnings. Check out our free in-depth research report to learn more about why CARR doesn’t pass our bar.

One Industrials Stock to Buy:

Aris Water (ARIS)

Rolling One-Year Beta: 2.60

Primarily serving the oil and gas industry, Aris Water (NYSE:ARIS) is a provider of water handling and recycling solutions.

Why Do We Love ARIS?

1. Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 54.9%
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 24.6% over the last two years outstripped its revenue performance
3. Free cash flow margin is now positive, indicating the company has achieved financial self-sustainability

Aris Water’s stock price of $24.48 implies a valuation ratio of 13.6x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.