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.

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 that could reward patient investors and two that might not be worth the risk.

Two Stocks to Sell:

Stitch Fix (SFIX)

Rolling One-Year Beta: 2.08

One of the original subscription box companies, Stitch Fix (NASDAQ: SFIX) is an online personal styling and fashion service that curates personalized clothing selections for customers.

Why Do We Avoid SFIX?

1. Number of active clients has disappointed over the past two years, indicating weak demand for its offerings
2. Historical operating margin losses point to an inefficient cost structure
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $5.50 per share, Stitch Fix trades at 15.6x forward EV-to-EBITDA. If you’re considering SFIX for your portfolio, see our FREE research report to learn more.

Kyndryl (KD)

Rolling One-Year Beta: 1.37

Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers.

Why Do We Think Twice About KD?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 4.6% annually over the last five years
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 1.4% for the last five years
3. Negative returns on capital show that some of its growth strategies have backfired

Kyndryl’s stock price of $32.05 implies a valuation ratio of 12x forward P/E. To fully understand why you should be careful with KD, check out our full research report (it’s free).

One Stock to Buy:

Amphenol (APH)

Rolling One-Year Beta: 1.56

With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.

Why Is APH a Good Business?

1. Market share has increased this cycle as its 22.4% annual revenue growth over the last two years was exceptional
2. Massive revenue base of $18.82 billion makes it a well-known name that influences purchasing decisions
3. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 29.1% outpaced its revenue gains

Amphenol is trading at $119.66 per share, or 42.4x 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

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 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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