1 Volatile Stock to Keep an Eye On and 2 Facing Headwinds
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.
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 with massive upside potential and two best left to the gamblers.
Two Industrials Stocks to Sell:
Novanta (NOVT)
Rolling One-Year Beta: 1.78
Originally a pioneer in the laser scanning industry during the late 1960s, Novanta (NASDAQ:NOVT) offers medicine and manufacturing technology to the medical, life sciences, and manufacturing industries.
Why Are We Hesitant About NOVT?
- Muted 4% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Flat earnings per share over the last two years underperformed the sector average
- 3.7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
At $122.61 per share, Novanta trades at 34.6x forward P/E. Read our free research report to see why you should think twice about including NOVT in your portfolio.
Standex (SXI)
Rolling One-Year Beta: 1.29
Holding over 500 patents globally, Standex (NYSE:SXI) is a manufacturer and distributor of industrial components for various sectors.
Why Are We Cautious About SXI?
- Sales trends were unexciting over the last two years as its 6% annual growth was below the typical industrials company
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.4 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Standex’s stock price of $226.76 implies a valuation ratio of 25.6x forward P/E. Dive into our free research report to see why there are better opportunities than SXI.
One Industrials Stock to Watch:
ITT (ITT)
Rolling One-Year Beta: 1.41
Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE:ITT) provides motion and fluid handling equipment for various industries
Why Could ITT Be a Winner?
- Highly efficient business model is illustrated by its impressive 17.5% operating margin
- Free cash flow margin expanded by 17.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
ITT is trading at $177.54 per share, or 24.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 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 Tecnoglass (+1,754% 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.