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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here is one volatile stock with massive upside potential and two best left to the gamblers.
Two Industrials Stocks to Sell:
Karat Packaging (KRT)
Rolling One-Year Beta: 1.22
Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.
Why Does KRT Worry Us?
- Sales trends were unexciting over the last two years as its 2.1% annual growth was below the typical industrials company
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.1% annually
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Karat Packaging’s stock price of $31.27 implies a valuation ratio of 11.5x forward EV-to-EBITDA. If you’re considering KRT for your portfolio, see our FREE research report to learn more.
Ryder (R)
Rolling One-Year Beta: 1.15
As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE: R) provides rental vehicles to businesses and delivers packages directly to homes or businesses.
Why Do We Steer Clear of R?
- Sizable revenue base leads to growth challenges as its 2.3% annual revenue increases over the last two years fell short of other industrials companies
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Free cash flow margin shrank by 14.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Ryder is trading at $158.32 per share, or 11.8x forward P/E. Dive into our free research report to see why there are better opportunities than R.
One Industrials Stock to Watch:
Curtiss-Wright (CW)
Rolling One-Year Beta: 1.31
Formed from a merger of 12 companies, Curtiss-Wright (NYSE: CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Why Is CW Interesting?
- Annual revenue growth of 10.6% over the last two years was superb and indicates its market share increased during this cycle
- Operating margin improvement of 4.7 percentage points over the last five years demonstrates its ability to scale efficiently
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.2% exceeded its revenue gains over the last two years
At $403.69 per share, Curtiss-Wright trades at 32.7x 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
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 176% over the last five years.
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.
