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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here is one volatile stock with massive upside potential and two that might not be worth the risk.
Two Stocks to Sell:
Frontdoor (FTDR)
Rolling One-Year Beta: 1.27
Established in 2018 as a spin-off from ServiceMaster Global Holdings, Frontdoor (NASDAQ:FTDR) is a provider of home warranty and service plans.
Why Do We Pass on FTDR?
- Performance surrounding its home service plans has lagged its peers
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Free cash flow margin is not anticipated to grow over the next year
Frontdoor’s stock price of $51.91 implies a valuation ratio of 12.3x forward P/E. Check out our free in-depth research report to learn more about why FTDR doesn’t pass our bar.
Array (ARRY)
Rolling One-Year Beta: 1.45
Going public in October 2020, Array (NASDAQ:ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.
Why Do We Avoid ARRY?
- Annual sales declines of 9.8% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share have contracted by 9.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $7.91 per share, Array trades at 10.6x forward P/E. If you’re considering ARRY for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Hamilton Lane (HLNE)
Rolling One-Year Beta: 1.10
With over $100 billion in assets under management and supervision, Hamilton Lane (NASDAQ:HLNE) is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors.
Why Is HLNE a Good Business?
- Market share has increased this cycle as its 22.1% annual revenue growth over the last two years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 28.4% annually, topping its revenue gains
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Hamilton Lane is trading at $126.23 per share, or 22.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 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 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
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