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2 Volatile Stocks for Long-Term Investors and 1 Facing Headwinds

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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.

These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here are two volatile stocks with massive upside potential and one that might not be worth the risk.

One Stock to Sell:

KeyCorp (KEY)

Rolling One-Year Beta: 1.36

Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE:KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.

Why Does KEY Give Us Pause?

  1. Net interest income trends were unexciting over the last five years as its 2.4% annual growth was below the typical banking firm
  2. Inability to adjust its cost structure while its revenue declined over the last four years led to a 33.8 percentage point increase in the firm’s efficiency ratio
  3. Sales were less profitable over the last two years as its earnings per share fell by 37.3% annually, worse than its revenue declines

At $18.12 per share, KeyCorp trades at 1.1x forward P/B. Check out our free in-depth research report to learn more about why KEY doesn’t pass our bar.

Two Stocks to Buy:

Quanta (PWR)

Rolling One-Year Beta: 1.38

A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.

Why Are We Backing PWR?

  1. Backlog has averaged 20.3% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
  2. Forecasted revenue growth of 12.7% for the next 12 months indicates its momentum over the last two years is sustainable
  3. Earnings per share have massively outperformed its peers over the last two years, increasing by 25.1% annually

Quanta’s stock price of $445.80 implies a valuation ratio of 38.2x 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.

Bloom Energy (BE)

Rolling One-Year Beta: 1.84

Working in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.

Why Will BE Beat the Market?

  1. Annual revenue growth of 15.8% over the past five years was outstanding, reflecting market share gains this cycle
  2. Free cash flow turned positive over the last five years, indicating the company has passed a significant test
  3. Historical investments are beginning to pay off as its returns on capital are growing

Bloom Energy is trading at $89.11 per share, or 169.4x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 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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