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. That said, here is one volatile stock with massive upside potential and two that might not be worth the risk.
Two Stocks to Sell:
Malibu Boats (MBUU)
Rolling One-Year Beta: 1.18
Founded in California in 1982, Malibu Boats (NASDAQ:MBUU) is a manufacturer of high-performance sports boats and luxury watercrafts.
Why Are We Bearish on MBUU?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Free cash flow margin is not anticipated to grow over the next year
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Malibu Boats’s stock price of $21.95 implies a valuation ratio of 8.8x forward P/E. To fully understand why you should be careful with MBUU, check out our full research report (it’s free).
SmartRent (SMRT)
Rolling One-Year Beta: 1.67
Founded by an employee at a real estate rental company, SmartRent (NYSE:SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
Why Are We Cautious About SMRT?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 16.6% annually over the last two years
- Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential
- Negative free cash flow raises questions about the return timeline for its investments
SmartRent is trading at $1.19 per share, or 28.8x forward EV-to-EBITDA. If you’re considering SMRT for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
WisdomTree (WT)
Rolling One-Year Beta: 1.53
Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE:WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.
Why Do We Love WT?
- Annual revenue growth of 25.9% over the past two years was outstanding, reflecting market share gains this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 49.8% exceeded its revenue gains over the last two years
At $21.76 per share, WisdomTree trades at 17.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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.