1 Volatile Stock That Stand Out and 2 to Brush Off

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. That said, here is one volatile stock with massive upside potential and two best left to the gamblers.

Two Business Services Stocks to Sell:

GEO Group (GEO)

Rolling One-Year Beta: 2.88

With a global footprint spanning three continents and approximately 81,000 beds across 100 facilities, GEO Group (NYSE:GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa.

Why Do We Think GEO Will Underperform?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. Earnings per share have dipped by 14.3% annually over the past four years, which is concerning because stock prices follow EPS over the long term
3. 7.4 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $30.34 per share, GEO Group trades at 15.9x forward price-to-earnings. Read our free research report to see why you should think twice about including GEO in your portfolio.

TD SYNNEX (SNX)

Rolling One-Year Beta: 1.28

Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE:SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.

Why Does SNX Give Us Pause?

1. Annual sales declines of 2.4% for the past two years show its products and services struggled to connect with the market during this cycle
2. Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
3. 8.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

TD SYNNEX’s stock price of $110.80 implies a valuation ratio of 8.3x forward price-to-earnings. If you’re considering SNX for your portfolio, see our FREE research report to learn more.

One Business Services Stock to Buy:

Magnite (MGNI)

Rolling One-Year Beta: 1.61

Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ:MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.

Why Are We Bullish on MGNI?

1. Annual revenue growth of 33.7% over the past five years was outstanding, reflecting market share gains this cycle
2. Additional sales over the last five years increased its profitability as the 77.3% annual growth in its earnings per share outpaced its revenue
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute

Magnite is trading at $12.35 per share, or 13.2x forward price-to-earnings. 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 victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.