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. Keeping that in mind, here is one volatile stock that could deliver huge gains and two that could just as easily collapse.
Two Stocks to Sell:
Enovis (ENOV)
Rolling One-Year Beta: 1.58
With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE: ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation.
Why Do We Think ENOV Will Underperform?
- Sales tumbled by 6.5% annually over the last five years, showing market trends are working against its favor during this cycle
- Negative returns on capital show management lost money while trying to expand the business, and its shrinking returns suggest its past profit sources are losing steam
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Enovis’s stock price of $27.83 implies a valuation ratio of 8.6x forward P/E. Dive into our free research report to see why there are better opportunities than ENOV.
Columbia Banking System (COLB)
Rolling One-Year Beta: 1.28
Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ: COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.
Why Does COLB Give Us Pause?
- Sales trends were unexciting over the last two years as its 5.7% annual growth was below the typical banking company
- Performance over the past two years shows its incremental sales were less profitable, as its 2.8% annual earnings per share growth trailed its revenue gains
- Annual tangible book value per share declines of 1.2% for the past five years show its capital management struggled during this cycle
At $29.26 per share, Columbia Banking System trades at 1.1x forward P/B. Check out our free in-depth research report to learn more about why COLB doesn’t pass our bar.
One Stock to Buy:
Hubbell (HUBB)
Rolling One-Year Beta: 1.25
A respected player in the electrical segment, Hubbell (NYSE: HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.
Why Will HUBB Outperform?
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin increased by 6.4 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Hubbell is trading at $462.83 per share, or 22.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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