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1 Volatile Stock with Promising Prospects and 2 We Avoid

CVLT Cover Image

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.

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 with massive upside potential and two that could just as easily collapse.

Two Stocks to Sell:

Valmont (VMI)

Rolling One-Year Beta: 1.09

Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE: VMI) provides engineered products and infrastructure services for the agricultural industry.

Why Are We Hesitant About VMI?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.9%
  3. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 6.8% annually

At $377 per share, Valmont trades at 23.1x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than VMI.

Resideo (REZI)

Rolling One-Year Beta: 1.45

Resideo Technologies, Inc. (NYSE: REZI) is a manufacturer and distributor of technology-driven products and solutions for home comfort, energy management, water management, and safety and security.

Why Does REZI Give Us Pause?

  1. Estimated sales growth of 2.4% for the next 12 months implies demand will slow from its two-year trend
  2. Poor free cash flow margin of 3.9% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
  3. Eroding returns on capital suggest its historical profit centers are aging

Resideo’s stock price of $34.72 implies a valuation ratio of 12.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including REZI in your portfolio.

One Stock to Watch:

Commvault (CVLT)

Rolling One-Year Beta: 1.30

Born from the need to create ironclad protection in an increasingly dangerous digital world, Commvault (NASDAQ: CVLT) provides data protection and cyber resilience software that helps organizations secure, back up, and recover their data across on-premises, hybrid, and multi-cloud environments.

Why Do We Like CVLT?

  1. Billings have averaged 26.5% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
  2. Prominent and differentiated software culminates in a premier gross margin of 82%
  3. Excellent operating margin of 7.6% highlights the efficiency of its business model

Commvault is trading at $176.76 per share, or 6.7x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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-small-cap company Exlservice (+354% 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.

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