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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here is one volatile stock that could reward patient investors and two that could just as easily collapse.
Two Stocks to Sell:
Janus (JBI)
Rolling One-Year Beta: 1.75
Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE:JBI) is a provider of easily accessible self-storage solutions.
Why Do We Avoid JBI?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 7.2% annually over the last two years
- Earnings per share have contracted by 5.3% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
- Diminishing returns on capital suggest its earlier profit pools are drying up
Janus’s stock price of $4.42 implies a valuation ratio of 6.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why JBI doesn’t pass our bar.
American Airlines (AAL)
Rolling One-Year Beta: 1.97
One of the ‘Big Four’ airlines in the US, American Airlines (NASDAQ:AAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.
Why Are We Out on AAL?
- Demand for its offerings was relatively low as its number of revenue passenger miles has underwhelmed
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
American Airlines is trading at $12.97 per share, or 12.8x forward P/E. To fully understand why you should be careful with AAL, check out our full research report (it’s free).
One Stock to Watch:
Grid Dynamics (GDYN)
Rolling One-Year Beta: 2.17
With engineering centers across the Americas, Europe, and India serving Fortune 1000 companies, Grid Dynamics (NASDAQ:GDYN) provides technology consulting, engineering, and analytics services to help large enterprises modernize their technology systems and business processes.
Why Does GDYN Stand Out?
- Annual revenue growth of 15.2% over the last two years was superb and indicates its market share increased during this cycle
- Earnings growth has comfortably beaten the peer group average over the last two years as its EPS has compounded at 14% annually
- Historical investments are beginning to pay off as its returns on capital are growing
At $8.08 per share, Grid Dynamics trades at 16.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.