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. 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:
Leslie's (LESL)
Rolling One-Year Beta: 1.49
Named after founder Philip Leslie, who established the company in 1963, Leslie’s (NASDAQ: LESL) is a retailer that sells pool and spa supplies, equipment, and maintenance services.
Why Should You Dump LESL?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Free cash flow margin shrank by 8.9 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $0.31 per share, Leslie's trades at 0.7x forward EV-to-EBITDA. If you’re considering LESL for your portfolio, see our FREE research report to learn more.
REV Group (REVG)
Rolling One-Year Beta: 1.62
Offering the first full-electric North American fire truck, REV (NYSE: REVG) manufactures and sells specialty vehicles.
Why Does REVG Give Us Pause?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Gross margin of 12% reflects its high production costs
- Poor expense management has led to an operating margin of 3% that is below the industry average
REV Group is trading at $50.91 per share, or 18.2x forward P/E. To fully understand why you should be careful with REVG, check out our full research report (it’s free).
One Stock to Watch:
Piper Sandler (PIPR)
Rolling One-Year Beta: 1.52
Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE: PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.
Why Could PIPR Be a Winner?
- Additional sales over the last two years increased its profitability as the 25.6% annual growth in its earnings per share outpaced its revenue
- Balance sheet strength has increased this cycle as its 13.2% annual tangible book value per share growth over the last five years was exceptional
- ROE punches in at 14.3%, illustrating management’s expertise in identifying profitable investments
Piper Sandler’s stock price of $322.06 implies a valuation ratio of 21.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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).
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-small-cap company Comfort Systems (+782% 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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