Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
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 that could reward patient investors and two that could just as easily collapse.
Two Industrials Stocks to Sell:
MYR Group (MYRG)
Rolling One-Year Beta: 1.95
Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ: MYRG) is a specialty contractor in the electrical construction industry.
Why Is MYRG Risky?
- Backlog has dropped by 2.4% on average over the past two years, suggesting it’s losing orders as competition picks up
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 4.6% annually while its revenue grew
- Eroding returns on capital suggest its historical profit centers are aging
At $195 per share, MYR Group trades at 26.8x forward P/E. If you’re considering MYRG for your portfolio, see our FREE research report to learn more.
DistributionNOW (DNOW)
Rolling One-Year Beta: 1.41
Spun off from National Oilwell Varco, DistributionNOW (NYSE: DNOW) provides distribution and supply chain solutions for the energy and industrial end markets.
Why Do We Avoid DNOW?
- Sales tumbled by 2.8% annually over the last five years, showing market trends are working against its favor during this cycle
- Earnings per share have dipped by 6.3% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- 4.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
DistributionNOW is trading at $15.56 per share, or 10.7x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including DNOW in your portfolio.
One Industrials Stock to Buy:
Vertiv (VRT)
Rolling One-Year Beta: 2.77
Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.
Why Will VRT Outperform?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 19.6% over the past two years
- Free cash flow margin increased by 5.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are growing as management capitalizes on its market opportunities
Vertiv’s stock price of $144.02 implies a valuation ratio of 36.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2024, 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 6 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 Kadant (+351% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
