A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south. While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
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 deliver huge gains and two that could just as easily collapse.
Two Stocks to Sell:
Zumiez (ZUMZ)
Rolling One-Year Beta: 1.82
With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ: ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.
Why Do We Think ZUMZ Will Underperform?
- Reduction in its number of stores signals a focus on profitability through targeted consolidation
- Modest revenue base of $932.8 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Underwhelming 0.2% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
At $15 per share, Zumiez trades at 45.2x forward P/E. Check out our free in-depth research report to learn more about why ZUMZ doesn’t pass our bar.
Kontoor Brands (KTB)
Rolling One-Year Beta: 1.13
Founded in 2019 after separating from VF Corporation, Kontoor Brands (NYSE: KTB) is a clothing company known for its high-quality denim products.
Why Do We Pass on KTB?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Kontoor Brands’s stock price of $66.06 implies a valuation ratio of 11.1x forward P/E. Read our free research report to see why you should think twice about including KTB in your portfolio.
One Stock to Buy:
FuelCell Energy (FCEL)
Rolling One-Year Beta: 2.15
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
Why Will FCEL Beat the Market?
- Annual revenue growth of 34.4% over the past two years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 41.4% annual growth in its earnings per share outpaced its revenue
- Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability
FuelCell Energy is trading at $16.24 per share, or 6x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
