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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here is one volatile stock with massive upside potential and two that could just as easily collapse.
Two Stocks to Sell:
Thermon (THR)
Rolling One-Year Beta: 1.12
Creating the first packaged tracing systems, Thermon (NYSE: THR) is a leading provider of engineered industrial process heating solutions for process industries.
Why Are We Cautious About THR?
- 3.5% annual revenue growth over the last two years was slower than its industrials peers
- Estimated sales growth of 4% for the next 12 months is soft and implies weaker demand
- Earnings per share lagged its peers over the last two years as they only grew by 5.6% annually
Thermon’s stock price of $41.30 implies a valuation ratio of 20.2x forward P/E. Dive into our free research report to see why there are better opportunities than THR.
Insteel (IIIN)
Rolling One-Year Beta: 1.16
Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE: IIIN) provides steel wire reinforcing products for concrete.
Why Do We Think Twice About IIIN?
- 5.9% annual revenue growth over the last two years was slower than its industrials peers
- Free cash flow margin shrank by 8.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Diminishing returns on capital suggest its earlier profit pools are drying up
Insteel is trading at $34.32 per share, or 10.5x forward P/E. Check out our free in-depth research report to learn more about why IIIN doesn’t pass our bar.
One Stock to Watch:
Customers Bancorp (CUBI)
Rolling One-Year Beta: 1.41
Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.
Why Do We Like CUBI?
- Annual net interest income growth of 14.8% over the past five years was outstanding, reflecting market share gains this cycle
- Operating profits are forecasted to increase over the next year as it scales and becomes more productive
- Annual tangible book value per share growth of 18.1% over the last five years was superb and indicates its capital strength increased during this cycle
At $77.52 per share, Customers Bancorp trades at 1.3x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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.
