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.
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 with massive upside potential and two best left to the gamblers.
Two Stocks to Sell:
Allison Transmission (ALSN)
Rolling One-Year Beta: 1.13
Helping build race cars at one point, Allison Transmission (NYSE: ALSN) offers transmissions to original equipment manufacturers and fleet operators.
Why Are We Cautious About ALSN?
- Muted 1.5% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Sales are projected to tank by 4.8% over the next 12 months as demand evaporates
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 6.3% annually
At $90.45 per share, Allison Transmission trades at 12.6x forward P/E. Check out our free in-depth research report to learn more about why ALSN doesn’t pass our bar.
Diebold Nixdorf (DBD)
Rolling One-Year Beta: 1.27
With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE: DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.
Why Are We Wary of DBD?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.3% annually over the last five years
- Cash-burning history makes us doubt the long-term viability of its business model
- Negative returns on capital show management lost money while trying to expand the business
Diebold Nixdorf’s stock price of $64.66 implies a valuation ratio of 13.8x forward P/E. If you’re considering DBD for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Trupanion (TRUP)
Rolling One-Year Beta: 1.16
Born from a vision to help pet owners avoid economic euthanasia when faced with expensive veterinary bills, Trupanion (NASDAQ: TRUP) provides medical insurance for cats and dogs through data-driven, vertically-integrated products priced specifically for each pet's unique characteristics.
Why Should TRUP Be on Your Watchlist?
- Annual revenue growth of 24.7% over the last five years was superb and indicates its market share increased during this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 208% over the last two years outstripped its revenue performance
- Annual book value per share growth of 16% over the last five years was superb and indicates its capital strength increased during this cycle
Trupanion is trading at $36.91 per share, or 4.2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 5 Strong Momentum Stocks for this week. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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