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. \n\nNavigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here are two volatile stocks that could reward patient investors and one that might not be worth the risk. \n\nOne Stock to Sell: \n\nSanmina (SANM)\n\nRolling One-Year Beta: 1.63\n\nFounded in 1980, Sanmina is an electronics manufacturing services company offering end-to-end solutions for various industries. \n\nWhy Are We Out on SANM?\nProducts and services are facing significant end-market challenges during this cycle as sales have declined by 6.2% annually over the last two yearsGross margin of 8.2% reflects its high production costsEarnings per share have dipped by 4.2% annually over the past two years, which is concerning because stock prices follow EPS over the long term\nAt $104.54 per share, Sanmina trades at 15.5x forward P/E. \n\nTwo Stocks to Watch: \n\nMonolithic Power Systems (MPWR)\n\nRolling One-Year Beta: 2.14\n\nFounded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption. \n\nWhy Do We Love MPWR?\nAnnual revenue growth of 13.1% over the last two years was superb and indicates its market share increased during this cycleImpressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive businessROIC punches in at 45.7%, illustrating management’s expertise in identifying profitable investments\nMonolithic Power Systems is trading at $712 per share, or 41.7x forward P/E. Is now the right time to buy? \n\nTrupanion (TRUP)\n\nRolling One-Year Beta: 1.15\n\nBorn from a vision to help pet owners avoid economic euthanasia when faced with expensive veterinary bills, Trupanion provides medical insurance for cats and dogs through data-driven, vertically-integrated products priced specifically for each pet's unique characteristics.\n\nWhy Should TRUP Be on Your Watchlist?\nImpressive 17.6% annual revenue growth over the last two years indicates it’s winning market share this cyclePerformance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 94.6% outpaced its revenue gainsImpressive 14.9% annual book value per share growth over the last five years indicates it’s building equity value this cycle\nTrupanion’s stock price of $50.26 implies a valuation ratio of 6.2x forward P/B. Is now a good time to buy? \n\nHigh-Quality Stocks for All Market Conditions\n\nThe market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. \n\nWhile the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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). \n\nStocks 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 Tecnoglass (+1,754% five-year return).

2 Volatile Stocks with Competitive Advantages and 1 to Question

The article analyzes three stocks: Sanmina (SANM), Monolithic Power Systems (MPWR), and Trupanion (TRUP). It highlights Sanmina as a stock to sell due to declining sales, margins, and earnings, while MPWR and TRUP are flagged as stocks to watch for growth potential. The piece also discusses market conditions in 2025 amid political and economic uncertainty, emphasizing companies that perform well across market conditions.