Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here is one volatile stock that could deliver huge gains and two that could just as easily collapse.
Two Stocks to Sell:
Okta (OKTA)
Rolling One-Year Beta: 1.22
Named after the meteorological measurement for cloud cover, Okta (NASDAQ: OKTA) provides cloud-based identity management solutions that help organizations securely connect their employees, partners, and customers to the right applications and services.
Why Does OKTA Worry Us?
- ARR growth averaged a weak 11.8% over the last year, suggesting that competition is pulling some attention away from its software
- Estimated sales growth of 9.9% for the next 12 months implies demand will slow from its two-year trend
- Operating margin improvement of 4.9 percentage points over the last year demonstrates its ability to scale efficiently
Okta’s stock price of $202.50 implies a valuation ratio of 10.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than OKTA.
AMC Entertainment (AMC)
Rolling One-Year Beta: 3.78
With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE: AMC) operates movie theaters primarily in the US and Europe.
Why Are We Out on AMC?
- Muted 7.9% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
- Free cash flow margin is not anticipated to grow over the next year
AMC Entertainment is trading at $3.28 per share, or 13.1x forward EV-to-EBITDA. If you’re considering AMC for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Sterling (STRL)
Rolling One-Year Beta: 1.43
Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ: STRL) provides civil infrastructure construction.
Why Do We Love STRL?
- Impressive 28.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Robust free cash flow margin of 15.1% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
- Returns on capital are growing as management capitalizes on its market opportunities
At $497.14 per share, Sterling trades at 22.9x 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
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
