1 Volatile Stock to Own for Decades and 2 That Underwhelm

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.

Navigating these stocks isn't easy, which is why StockStory helps you find Comfort In Chaos . That said, here is one volatile stock that could reward patient investors and two that may be too risky for most investors.

Two Stocks to Sell:

United Parks & Resorts (PRKS)

Rolling One-Year Beta: 1.75

Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE:PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.

Why Do We Think PRKS Will Underperform?

1. Performance surrounding its visitors has lagged its peers

2. Low free cash flow margin of 12.4% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

3. Eroding returns on capital from an already low base indicate that management's recent investments are destroying value

At $32.83 per share, United Parks & Resorts trades at 8.4x forward P/E. To fully understand why you should be careful with PRKS, check out our full research report (it's free) .

Herc (HRI)

Rolling One-Year Beta: 1.57

Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE:HRI) provides equipment rental and related services to a wide range of industries.

Why Are We Cautious About HRI?

1. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 7 percentage points

2. Earnings per share fell by 30.3% annually over the last two years while its revenue grew, partly because it diluted shareholders

3. Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned

Herc is trading at $137.28 per share, or 17.3x forward P/E. Check out our free in-depth research report to learn more about why HRI doesn't pass our bar .

One Stock to Buy:

Nvidia (NVDA)

Rolling One-Year Beta: 1.66

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.

Why Should You Buy NVDA?

1. Annual revenue growth of 77.4% over the past two years was outstanding, reflecting market share gains this cycle

2. Share buybacks catapulted its annual earnings per share growth to 82.6%, which outperformed its revenue gains over the last five years

3. Strong free cash flow margin of 42.5% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute