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. That said, here is one volatile stock with massive upside potential and two that could just as easily collapse.
Two Stocks to Sell:
Chegg (CHGG)
Rolling One-Year Beta: 2.17
Started as a physical textbook rental service, Chegg (NYSE: CHGG) is now a digital platform addressing student pain points by providing study and academic assistance.
Why Do We Think CHGG Will Underperform?
- Value proposition isn’t resonating strongly as its services subscribers averaged 27% drops over the last two years
- Overall productivity fell over the last few years as its plummeting sales were accompanied by a decline in its EBITDA margin
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
Chegg’s stock price of $0.73 implies a valuation ratio of 2.5x forward EV/EBITDA. If you’re considering CHGG for your portfolio, see our FREE research report to learn more.
Ridgepost Capital (RPC)
Rolling One-Year Beta: 1.47
Operating as a bridge between institutional investors and hard-to-access private market opportunities, Ridgepost Capital (NYSE: RPC) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.
Why Are We Cautious About RPC?
- Annual earnings per share growth of 5.7% underperformed its revenue over the last two years, showing its incremental sales were less profitable
- Underwhelming 4.5% return on equity reflects management’s difficulties in finding profitable growth opportunities
At $7.63 per share, Ridgepost Capital trades at 7x forward P/E. To fully understand why you should be careful with RPC, check out our full research report (it’s free).
One Stock to Buy:
DXP (DXPE)
Rolling One-Year Beta: 1.14
Founded during the emergence of Big Oil in Texas, DXP (NASDAQ: DXPE) provides pumps, valves, and other industrial components.
What Makes DXPE Stand Out?
- Impressive 16.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin expanded by 4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
DXP is trading at $194.02 per share, or 25.4x 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
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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
