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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.

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. Check out our free in-depth research report to learn more about why GEO doesn’t pass our bar.

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. To fully understand why you should be careful with SNX, check out our full research report (it’s free).

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.