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 best left to the gamblers.
Two Stocks to Sell:
MSC Industrial (MSM)
Rolling One-Year Beta: 1.09
Founded in NYC’s Little Italy, MSC Industrial Direct (NYSE: MSM) provides industrial supplies and equipment, offering vast and reliable selection for customers such as contractors
Why Do We Pass on MSM?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- Eroding returns on capital suggest its historical profit centers are aging
MSC Industrial’s stock price of $84.27 implies a valuation ratio of 19.1x forward P/E. Dive into our free research report to see why there are better opportunities than MSM.
Franklin Resources (BEN)
Rolling One-Year Beta: 1.06
Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE: BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.
Why Do We Think BEN Will Underperform?
- 4.8% annual revenue growth over the last two years was slower than its financials peers
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 3.3% annually while its revenue grew
- ROE of 8.5% reflects management’s challenges in identifying attractive investment opportunities
At $23.07 per share, Franklin Resources trades at 9.1x forward P/E. Check out our free in-depth research report to learn more about why BEN doesn’t pass our bar.
One Stock to Watch:
Concentrix (CNXC)
Rolling One-Year Beta: 1.41
With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.
Why Do We Like CNXC?
- Annual revenue growth of 22.1% over the last two years was superb and indicates its market share increased during this cycle
- Revenue base of $9.72 billion gives it economies of scale and some distribution advantages
- Free cash flow margin of 5.6% over the last five years means it can fund investments internally, mitigating its dependence on capital markets
Concentrix is trading at $38.74 per share, or 3.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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-micro-cap company Tecnoglass (+1,754% 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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