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.
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 deliver huge gains and two that may be too risky for most investors.
Two Stocks to Sell:
Ameresco (AMRC)
Rolling One-Year Beta: 1.87
Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE: AMRC) provides energy and renewable energy solutions for various sectors.
Why Are We Wary of AMRC?
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 15.7% annually
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Ameresco’s stock price of $23.70 implies a valuation ratio of 16.6x forward P/E. Read our free research report to see why you should think twice about including AMRC in your portfolio.
Winnebago (WGO)
Rolling One-Year Beta: 1.50
Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE: WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.
Why Are We Bearish on WGO?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.2% annually over the last five years
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
Winnebago is trading at $27.07 per share, or 12.6x forward P/E. Check out our free in-depth research report to learn more about why WGO doesn’t pass our bar.
One Stock to Buy:
Carvana (CVNA)
Rolling One-Year Beta: 2.78
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Why Do We Love CVNA?
- Retail Units Sold have increased by an average of 37.7% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Platform’s growing usage and its ability to increase unit spending by 10.7% annually showcases its high switching costs
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 43.6% over the last three years outstripped its revenue performance
At $65.90 per share, Carvana trades at 15.3x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
