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. Keeping that in mind, here is one volatile stock that could deliver huge gains and two best left to the gamblers.

Two Stocks to Sell:

Guardant Health (GH)

Rolling One-Year Beta: 1.58

Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health (NASDAQ: GH) develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies.

Why Are We Wary of GH?

1. Earnings per share fell by 23.7% annually over the last five years while its revenue grew, partly because it diluted shareholders
2. Negative free cash flow raises questions about the return timeline for its investments
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

Guardant Health is trading at $45.50 per share, or 6.1x forward price-to-sales. If you’re considering GH for your portfolio, see our FREE research report to learn more.

Zebra (ZBRA)

Rolling One-Year Beta: 1.56

Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Why Do We Think ZBRA Will Underperform?

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. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 8.2% annually, worse than its revenue
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Zebra’s stock price of $328.39 implies a valuation ratio of 21.2x forward P/E. Dive into our free research report to see why there are better opportunities than ZBRA.

One Stock to Buy:

Federal Signal (FSS)

Rolling One-Year Beta: 1.22

Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE: FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.

Why Will FSS Beat the Market?

1. Demand is greater than supply as the company’s 10.8% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
2. Operating margin improvement of 4.1 percentage points over the last five years demonstrates its ability to scale efficiently
3. Earnings per share grew by 28.7% annually over the last two years and trumped its peers

At $107.75 per share, Federal Signal trades at 28.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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-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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