Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.
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 that could deliver huge gains and two best left to the gamblers.
Two Stocks to Sell:
Best Buy (BBY)
Rolling One-Year Beta: 1.14
With humble beginnings as a stereo equipment seller, Best Buy (NYSE: BBY) now sells a broad selection of consumer electronics, appliances, and home office products.
Why Does BBY Give Us Pause?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Gross margin of 22.4% is an output of its commoditized inventory
- Poor expense management has led to an operating margin of 3.1% that is below the industry average
Best Buy’s stock price of $77.63 implies a valuation ratio of 12.1x forward P/E. If you’re considering BBY for your portfolio, see our FREE research report to learn more.
American Woodmark (AMWD)
Rolling One-Year Beta: 1.32
Starting as a small millwork shop, American Woodmark (NASDAQ: AMWD) is a cabinet manufacturing company that helps customers from inspiration to installation.
Why Do We Avoid AMWD?
- Annual sales declines of 9.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
American Woodmark is trading at $68.01 per share, or 13.8x forward P/E. To fully understand why you should be careful with AMWD, check out our full research report (it’s free).
One Stock to Watch:
Limbach (LMB)
Rolling One-Year Beta: 1.66
Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.
Why Does LMB Stand Out?
- Operating margin increased by 6.2 percentage points over the last five years as it refined its cost structure
- Additional sales over the last two years increased its profitability as the 45.1% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 5.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $107.14 per share, Limbach trades at 24.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 Tecnoglass (+1,754% 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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