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 that could just as easily collapse.
Two Stocks to Sell:
Kohl's (KSS)
Rolling One-Year Beta: 2.56
Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE:KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.
Why Are We Bearish on KSS?
- Absence of new stores indicates weak demand as management focuses on improving existing location performance
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Operating margin of 3.7% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
Kohl's is trading at $17.43 per share, or 11x forward P/E. Check out our free in-depth research report to learn more about why KSS doesn’t pass our bar.
Freshpet (FRPT)
Rolling One-Year Beta: 1.48
Standing out from typical processed pet foods, Freshpet (NASDAQ:FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Why Do We Think Twice About FRPT?
- Revenue base of $1.18 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.4% for the last two years
- Low returns on capital reflect management’s struggle to allocate funds effectively
Freshpet’s stock price of $61.45 implies a valuation ratio of 37x forward P/E. Read our free research report to see why you should think twice about including FRPT in your portfolio.
One Stock to Watch:
Mirion (MIR)
Rolling One-Year Beta: 1.39
With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE:MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.
Why Is MIR on Our Radar?
- Annual revenue growth of 11.7% over the past two years was outstanding, reflecting market share gains this cycle
- Adjusted operating margin expanded by 13.3 percentage points over the last five years as it scaled and became more efficient
- Free cash flow margin jumped by 13.7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $16.23 per share, Mirion trades at 26.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.