1 Volatile Stock with Solid Fundamentals and 2 We Ignore

Yahoo

3 days ago

Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.
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 deliver huge gains and two that could just as easily collapse.
Two Stocks to Sell:
Qualys (QLYS)
Rolling One-Year Beta: 1.26
Originally developed to address the growing complexity of IT security in the cloud era, Qualys (NASDAQ:QLYS) provides a cloud-based platform that helps organizations identify, manage, and protect their IT assets from cyber threats across on-premises, cloud, and mobile environments.
Why Does QLYS Fall Short?
Underwhelming ARR growth of 9.6% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
Estimated sales growth of 6.8% for the next 12 months implies demand will slow from its three-year trend
Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 3.9 percentage points over the next year
At $131.71 per share, Qualys trades at 6.9x forward price-to-sales. To fully understand why you should be careful with QLYS, check out our full research report (it's free).
First Bancorp (FBNC)
Rolling One-Year Beta: 1.13
Founded during the Great Depression in 1934 and originally known as Montgomery Bancorp, First Bancorp (NASDAQ:FBNC) is a community-oriented commercial bank providing a wide range of financial services to businesses and individuals in North and South Carolina.
Why Do We Think Twice About FBNC?
Products and services are facing significant end-market challenges during this cycle as sales have declined by 5% annually over the last two years
Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 28.3 basis points (100 basis points = 1 percentage point)
Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
First Bancorp is trading at $52.22 per share, or 1.4x forward P/B. Read our free research report to see why you should think twice about including FBNC in your portfolio, it's free.
One Stock to Watch:
Core & Main (CNM)
Rolling One-Year Beta: 1.35
Formerly a division of industrial distributor HD Supply, Core & Main (NYSE:CNM) is a provider of water, wastewater, and fire protection products and services.
Why Are We Fans of CNM?
Annual revenue growth of 17.1% over the last five years was superb and indicates its market share increased during this cycle
Operating margin improvement of 3.8 percentage points over the last five years demonstrates its ability to scale efficiently
Share buybacks catapulted its annual earnings per share growth to 19.2%, which outperformed its revenue gains over the last two years
Core & Main's stock price of $64.12 implies a valuation ratio of 25.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free.
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 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).
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-small-cap company Comfort Systems (+782% 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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