1 Volatile Stock to Own for Decades and 2 We Avoid

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 could just as easily collapse.

Two Stocks to Sell:

Steven Madden (SHOO)

Rolling One-Year Beta: 1.23

As seen in the infamous Wolf of Wall Street movie, Steven Madden (NASDAQ:SHOO) is a fashion brand famous for its trendy and innovative footwear, appealing to a young and style-conscious audience.

Why Should You Sell SHOO?

1. Muted 13.2% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
2. Low free cash flow margin of 7.8% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $39.24 per share, Steven Madden trades at 19.4x forward P/E. Check out our free in-depth research report to learn more about why SHOO doesn’t pass our bar.

Citizens Financial Group (CFG)

Rolling One-Year Beta: 1.28

Tracing its roots back to 1828 as a community-focused institution, Citizens Financial Group (NYSE:CFG) is a regional bank that provides retail and commercial banking services to individuals, small businesses, and large corporations across 14 states.

Why Is CFG Risky?

1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
2. Annual net interest income growth of 5% over the last five years was below our standards for the banking sector
3. Flat earnings per share over the last two years underperformed the sector average

Citizens Financial Group is trading at $64.25 per share, or 1.1x forward P/B. If you’re considering CFG for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Super Micro (SMCI)

Rolling One-Year Beta: 2.24

Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ:SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.

Why Will SMCI Outperform?

1. Annual revenue growth of 74.1% over the last two years was superb and indicates its market share increased during this cycle
2. Enormous revenue base of $28.06 billion provides significant distribution advantages
3. Free cash flow turned positive over the last five years, indicating the company has passed a significant test

Super Micro’s stock price of $30.45 implies a valuation ratio of 13.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.