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.

At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here are two volatile stocks with massive upside potential and one that could just as easily collapse.

One Stock to Sell:

Jack in the Box (JACK)

Rolling One-Year Beta: 1.10

Delighting customers since its inception in 1951, Jack in the Box (NASDAQ: JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.

Why Should You Sell JACK?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
2. Earnings per share have contracted by 20.2% annually over the last six years, a headwind for returns as stock prices often echo long-term EPS performance
3. 11× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $18.14 per share, Jack in the Box trades at 3.6x forward P/E. Read our free research report to see why you should think twice about including JACK in your portfolio.

Two Stocks to Watch:

Lyft (LYFT)

Rolling One-Year Beta: 1.35

Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada.

Why Are We Positive On LYFT?

1. Active Riders have grown by 10.3% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
2. Additional sales over the last three years increased its profitability as the 39.2% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin grew by 23.7 percentage points over the last few years, giving the company more chips to play with

Lyft is trading at $16.92 per share, or 12.6x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

VSE Corporation (VSEC)

Rolling One-Year Beta: 1.32

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ: VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

Why Should VSEC Be on Your Watchlist?

1. Annual revenue growth of 22.5% over the past two years was outstanding, reflecting market share gains this cycle
2. Operating margin expanded by 5.4 percentage points over the last five years as it scaled and became more efficient
3. Incremental sales over the last five years have been more profitable as its earnings per share increased by 14.2% annually, topping its revenue gains

VSE Corporation’s stock price of $161.18 implies a valuation ratio of 41.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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