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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.

These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here is one volatile stock that could reward patient investors and two best left to the gamblers.

Two Industrials Stocks to Sell:

Rush Enterprises (RUSHA)

Rolling One-Year Beta: 1.07

Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.

Why Do We Avoid RUSHA?

1. Muted 4.8% annual revenue growth over the last two years shows its demand lagged behind its industrials peers

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. Free cash flow margin shrank by 9.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $52.25 per share, Rush Enterprises trades at 12.8x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than RUSHA.

Carrier Global (CARR)

Rolling One-Year Beta: 1.45

Founded by the inventor of air conditioning, Carrier Global (NYSE:CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.

Why Should You Dump CARR?

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. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.7 percentage points

3. Diminishing returns on capital suggest its earlier profit pools are drying up

Carrier Global is trading at $59.12 per share, or 19.5x forward price-to-earnings. If you’re considering CARR for your portfolio, see our FREE research report to learn more.

One Industrials Stock to Buy:

Aris Water (ARIS)

Rolling One-Year Beta: 2.60

Primarily serving the oil and gas industry, Aris Water (NYSE:ARIS) is a provider of water handling and recycling solutions.

Why Do We Love ARIS?

1. Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 54.9%

2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 24.6% over the last two years outstripped its revenue performance

3. Free cash flow margin is now positive, indicating the company has achieved financial self-sustainability