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 reward patient investors and two that might not be worth the risk.
Two Stocks to Sell:
Kura Sushi (KRUS)
Rolling One-Year Beta: 1.78
Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ: KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology.
Why Does KRUS Fall Short?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Kura Sushi is trading at $84.81 per share, or 46.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than KRUS.
IAC (IAC)
Rolling One-Year Beta: 1.39
Originally known as InterActiveCorp and built through Barry Diller's strategic acquisitions since the 1990s, IAC (NASDAQ: IAC) operates a portfolio of category-leading digital businesses including Dotdash Meredith, Angi, and Care.com, focusing on digital publishing, home services, and caregiving platforms.
Why Is IAC Risky?
- Sales tumbled by 20.4% annually over the last two years, showing market trends are working against its favor during this cycle
- Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
- Negative returns on capital show that some of its growth strategies have backfired
IAC’s stock price of $36 implies a valuation ratio of 22.4x forward P/E. If you’re considering IAC for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Intuitive Surgical (ISRG)
Rolling One-Year Beta: 1.18
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Is ISRG Interesting?
- Products are reaching more customers as its system placement averaged 11.4% growth over the past two years
- Projected revenue growth of 14.2% for the next 12 months suggests its momentum from the last two years will persist
- Earnings per share grew by 17.7% annually over the last five years, massively outpacing its peers
At $472.90 per share, Intuitive Surgical trades at 56.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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).
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