1 Volatile Stock for Long-Term Investors and 2 We Find Risky

MU Cover Image

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. That said, here is one volatile stock that could deliver huge gains and two that might not be worth the risk.

Two Stocks to Sell:

Hyatt Hotels (H)

Rolling One-Year Beta: 1.05

Founded in 1957, Hyatt Hotels (NYSE: H) is a global hospitality company with a portfolio of 20 premier brands and over 950 properties across 65 countries.

Why Should You Sell H?

  1. Revenue per room has underperformed over the past two years, suggesting it may need to develop new facilities
  2. Estimated sales growth of 5% for the next 12 months is soft and implies weaker demand
  3. Push for growth has led to negative returns on capital, signaling value destruction

Hyatt Hotels is trading at $142 per share, or 43.9x forward P/E. If you’re considering H for your portfolio, see our FREE research report to learn more.

Fastly (FSLY)

Rolling One-Year Beta: 2.02

Founded in 2011, Fastly (NYSE: FSLY) provides content delivery and edge cloud computing services, enabling enterprises and developers to deliver fast, secure, and scalable digital content and experiences.

Why Do We Avoid FSLY?

  1. 14.3% annual revenue growth over the last three years was slower than its software peers
  2. Gross margin of 54% reflects its high servicing costs
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $6.79 per share, Fastly trades at 1.6x forward price-to-sales. Check out our free in-depth research report to learn more about why FSLY doesn’t pass our bar.

One Stock to Watch:

Micron (MU)

Rolling One-Year Beta: 2.27

Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE: MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.

Why Do We Like MU?

  1. Market share has increased this cycle as its 36.4% annual revenue growth over the last two years was exceptional
  2. Notable projected revenue growth of 36.8% for the next 12 months hints at market share gains
  3. Incremental sales over the last five years boosted profitability as its annual earnings per share growth of 22.8% outstripped its revenue performance

Micron’s stock price of $107.96 implies a valuation ratio of 10.9x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2024 "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 5 Strong Momentum 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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