Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here is one volatile stock that could deliver huge gains and two that could just as easily collapse.
Two Stocks to Sell:
Leggett & Platt (LEG)
Rolling One-Year Beta: 1.52
Founded in 1883, Leggett & Platt (NYSE: LEG) is a diversified manufacturer of products and components for various industries.
Why Do We Steer Clear of LEG?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Poor free cash flow margin of 6.1% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Leggett & Platt is trading at $12.15 per share, or 11.7x forward P/E. Read our free research report to see why you should think twice about including LEG in your portfolio.
Moderna (MRNA)
Rolling One-Year Beta: 1.44
Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ: MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.
Why Do We Think MRNA Will Underperform?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 50.5% annually over the last two years
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 215.1 percentage points
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Moderna’s stock price of $48.58 implies a valuation ratio of 11x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MRNA.
One Stock to Buy:
NCR Atleos (NATL)
Rolling One-Year Beta: 1.05
Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE: NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.
Why Is NATL a Good Business?
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 82% outpaced its revenue gains
At $37.64 per share, NCR Atleos trades at 8.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Check out the high-quality names we’ve flagged 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
