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. Keeping that in mind, here is one volatile stock that could deliver huge gains and two best left to the gamblers.
Two Stocks to Sell:
Shoe Carnival (SCVL)
Rolling One-Year Beta: 1.09
Known for its playful atmosphere that features carnival elements, Shoe Carnival (NASDAQ: SCVL) is a retailer that sells footwear from mainstream brands for the entire family.
Why Do We Avoid SCVL?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Subscale operations are evident in its revenue base of $1.14 billion, meaning it has fewer distribution channels than its larger rivals
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
Shoe Carnival is trading at $19.18 per share, or 11.7x forward P/E. Read our free research report to see why you should think twice about including SCVL in your portfolio.
Lucky Strike (LUCK)
Rolling One-Year Beta: 1.34
Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike (NYSE: LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.
Why Are We Out on LUCK?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Lucky Strike’s stock price of $8.89 implies a valuation ratio of 53.4x forward P/E. If you’re considering LUCK for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Moody's (MCO)
Rolling One-Year Beta: 1.23
Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE: MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.
Why Are We Backing MCO?
- Annual revenue growth of 14.5% over the last two years beat the sector average and underscores the unique value of its offerings
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 63.8% return on equity demonstrates management’s skill in finding high-return investments
At $537.17 per share, Moody's trades at 33.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
