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 are two volatile stocks with massive upside potential and one that could just as easily collapse.
One Stock to Sell:
Insight Enterprises (NSIT)
Rolling One-Year Beta: 1.75
With over 35 years of IT expertise and partnerships with more than 8,000 technology providers, Insight Enterprises (NASDAQ:NSIT) provides end-to-end digital transformation solutions that help businesses modernize their IT infrastructure and maximize the value of technology.
Why Does NSIT Worry Us?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Low free cash flow margin of 3.5% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Eroding returns on capital suggest its historical profit centers are aging
At $157.42 per share, Insight Enterprises trades at 12.3x forward P/E. If you’re considering NSIT for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
LSI (LYTS)
Rolling One-Year Beta: 1.60
Enhancing commercial environments, LSI (NASDAQ:LYTS) provides lighting and display solutions for businesses and retailers.
Why Are We Bullish on LYTS?
- Annual revenue growth of 21.2% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 30.7% annually, topping its revenue gains
- Free cash flow margin jumped by 7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
LSI’s stock price of $20.68 implies a valuation ratio of 15.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Brink's (BCO)
Rolling One-Year Beta: 1.18
Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE:BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide.
Why Are We Positive on BCO?
- Economies of scale give it some operating leverage when demand rises
- Share buybacks catapulted its annual earnings per share growth to 13.7%, which outperformed its revenue gains over the last five years
- Rising returns on capital show management is finding more attractive investment opportunities
Brink's is trading at $107.07 per share, or 10.9x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.