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 are two volatile stocks that could reward patient investors and one that may be too risky for most investors.
One Stock to Sell:
Sabre (SABR)
Rolling One-Year Beta: 1.91
Originally a division of American Airlines, Sabre (NASDAQ:SABR) is a technology provider for the global travel and tourism industry.
Why Do We Avoid SABR?
- Number of total bookings has disappointed over the past two years, indicating weak demand for its offerings
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $1.89 per share, Sabre trades at 6.8x forward EV-to-EBITDA. If you’re considering SABR for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Flywire (FLYW)
Rolling One-Year Beta: 1.85
Initially created to solve the challenges of international student tuition payments, Flywire (NASDAQ:FLYW) provides specialized payment processing and software solutions that help educational institutions, healthcare systems, travel companies, and businesses manage complex payments.
Why Are We Fans of FLYW?
- Billings growth has averaged 33.9% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Forecasted revenue growth of 17.1% for the next 12 months indicates its momentum over the last two years is sustainable
- Solid free cash flow generation relative to most peers gives it a cushion and grants it various reinvestment opportunities
Flywire’s stock price of $18.76 implies a valuation ratio of 2.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Bel Fuse (BELFA)
Rolling One-Year Beta: 1.35
Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ:BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.
Why Should You Buy BELFA?
- Market share has increased this cycle as its 15.3% annual revenue growth over the last two years was exceptional
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 27.1% over the last two years outstripped its revenue performance
- Free cash flow margin increased by 8.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Bel Fuse is trading at $195.52 per share, or 25.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.