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1 Volatile Stock to Research Further and 2 We Brush Off

WCC 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 with massive upside potential and two that might not be worth the risk.

Two Stocks to Sell:

WESCO (WCC)

Rolling One-Year Beta: 1.59

Based in Pittsburgh, WESCO (NYSE: WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.

Why Are We Wary of WCC?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
  2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
  3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.2% for the last five years

WESCO’s stock price of $203.35 implies a valuation ratio of 14.3x forward P/E. Dive into our free research report to see why there are better opportunities than WCC.

Diebold Nixdorf (DBD)

Rolling One-Year Beta: 1.20

With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE: DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.

Why Do We Think Twice About DBD?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.9% annually over the last five years
  2. Cash-burning history makes us doubt the long-term viability of its business model
  3. Negative returns on capital show that some of its growth strategies have backfired

Diebold Nixdorf is trading at $59.04 per share, or 15x forward P/E. Read our free research report to see why you should think twice about including DBD in your portfolio.

One Stock to Watch:

Ameris Bancorp (ABCB)

Rolling One-Year Beta: 1.16

Tracing its roots back to 1971 and expanding significantly through both organic growth and strategic acquisitions, Ameris Bancorp (NYSE: ABCB) is a financial holding company that provides a full range of banking services to retail and commercial customers across select markets in the southeastern United States.

Why Are We Positive On ABCB?

  1. Annual revenue growth of 8.4% over the last five years beat the sector average and underscores the unique value of its offerings
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 7.2% over the last two years outstripped its revenue performance
  3. Balance sheet strength has increased this cycle as its 14.3% annual tangible book value per share growth over the last five years was exceptional

At $66.68 per share, Ameris Bancorp trades at 1.1x forward P/B. Is now a good time to buy? See for yourself in our comprehensive 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 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 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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