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 that could deliver huge gains and one best left to the gamblers.
One Stock to Sell:
EchoStar (SATS)
Rolling One-Year Beta: 1.29
Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ: SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.
Why Are We Out on SATS?
- Annual sales declines of 6.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Unprofitable operations could lead to additional rounds of dilutive equity financing if the credit window closes
At $116 per share, EchoStar trades at 32.1x forward EV-to-EBITDA. To fully understand why you should be careful with SATS, check out our full research report (it’s free).
Two Stocks to Buy:
Duolingo (DUOL)
Rolling One-Year Beta: 1.61
Founded by a Carnegie Mellon computer science professor and his Ph.D. student, Duolingo (NASDAQ: DUOL) is a mobile app helping people learn new languages.
Why Are We Bullish on DUOL?
- Has the opportunity to boost monetization through new features and premium offerings as its monthly active users have grown by 33.1% annually over the last two years
- Additional sales over the last three years increased its profitability as the 259% annual growth in its earnings per share outpaced its revenue
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
Duolingo’s stock price of $132.12 implies a valuation ratio of 15.5x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
WisdomTree (WT)
Rolling One-Year Beta: 1.16
Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE: WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.
Why Will WT Beat the Market?
- Market share has increased this cycle as its 18.9% annual revenue growth over the last two years was exceptional
- Share buybacks catapulted its annual earnings per share growth to 52.5%, which outperformed its revenue gains over the last two years
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
WisdomTree is trading at $16.08 per share, or 14.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
