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. That said, here is one volatile stock with massive upside potential and two that might not be worth the risk.
Two Stocks to Sell:
Himax (HIMX)
Rolling One-Year Beta: 2.13
Taiwan-based Himax Technologies (NASDAQ:HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones.
Why Do We Think HIMX Will Underperform?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 6% annually over the last two years
- Projected sales decline of 4.4% over the next 12 months indicates demand will continue deteriorating
- Efficiency has decreased over the last five years as its operating margin fell by 22.9 percentage points
Himax is trading at $8 per share, or 54.2x forward P/E. Read our free research report to see why you should think twice about including HIMX in your portfolio.
Viavi Solutions (VIAV)
Rolling One-Year Beta: 1.16
Once known as JDS Uniphase before its 2015 rebranding, Viavi Solutions (NASDAQ:VIAV) provides testing, monitoring and assurance solutions for telecommunications, cloud, enterprise, military, and other critical networks and infrastructure.
Why Are We Wary of VIAV?
- 2.3% annual revenue growth over the last five years was slower than its industrials peers
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 3.1% annually while its revenue grew
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $25.91 per share, Viavi Solutions trades at 25.6x forward P/E. To fully understand why you should be careful with VIAV, check out our full research report (it’s free).
One Stock to Buy:
Ameriprise Financial (AMP)
Rolling One-Year Beta: 1.14
Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE:AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.
Why Is AMP a Good Business?
- Share buybacks catapulted its annual earnings per share growth to 22.8%, which outperformed its revenue gains over the last five years
- Balance sheet strength has increased this cycle as its 84.7% annual tangible book value per share growth over the last two years was exceptional
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Ameriprise Financial’s stock price of $531.95 implies a valuation ratio of 12.4x forward P/E. Is now a good 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 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.