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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here are two volatile stocks that could deliver huge gains and one that might not be worth the risk.
One Stock to Sell:
Clover Health (CLOV)
Rolling One-Year Beta: 1.17
Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ:CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.
Why Are We Wary of CLOV?
- Annual sales declines of 18.1% for the past two years show its products and services struggled to connect with the market during this cycle
- Smaller revenue base of $1.61 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
Clover Health is trading at $2.61 per share, or 18.6x forward P/E. Read our free research report to see why you should think twice about including CLOV in your portfolio.
Two Stocks to Watch:
CSW (CSW)
Rolling One-Year Beta: 1.75
With over two centuries of combined operations manufacturing and supplying, CSW (NASDAQ:CSW) offers special chemicals, coatings, sealants, and lubricants for various industries.
Why Do We Love CSW?
- Market share has increased this cycle as its 19.6% annual revenue growth over the last five years was exceptional
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 25.9% outpaced its revenue gains
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
At $273.54 per share, CSW trades at 27.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Webster Financial (WBS)
Rolling One-Year Beta: 1.51
Founded during the Great Depression in 1935 and evolving into a major Northeastern financial institution, Webster Financial (NYSE:WBS) is a bank holding company that provides commercial banking, consumer banking, and employee benefits solutions through its Webster Bank and HSA Bank division.
Why Could WBS Be a Winner?
- Annual net interest income growth of 22.1% over the last five years was superb and indicates its market share increased during this cycle
- Efficiency ratio improved by 12.8 percentage points over the last four years as it scaled
- Earnings per share grew by 13.8% annually over the last five years and trumped its peers
Webster Financial’s stock price of $62.22 implies a valuation ratio of 1.1x forward P/B. 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
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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