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. Keeping that in mind, here is one volatile stock that could deliver huge gains and two that might not be worth the risk.
Two Stocks to Sell:
USANA (USNA)
Rolling One-Year Beta: 1.16
Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE: USNA) manufactures and sells nutritional, personal care, and skincare products.
Why Does USNA Give Us Pause?
- Sales tumbled by 4.2% annually over the last three years, showing consumer trends are working against its favor
- Forecasted revenue decline of 1.4% for the upcoming 12 months implies demand will fall even further
- Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 20.9% annually, worse than its revenue
At $20.21 per share, USANA trades at 10.5x forward P/E. Read our free research report to see why you should think twice about including USNA in your portfolio.
Purple (PRPL)
Rolling One-Year Beta: 1.73
Founded by two brothers, Purple (NASDAQ: PRPL) creates sleep and home comfort products such as mattresses, pillows, and bedding accessories.
Why Are We Out on PRPL?
- Annual sales declines of 5.3% for the past five years show its products and services struggled to connect with the market
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Purple’s stock price of $0.76 implies a valuation ratio of 5.6x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than PRPL.
One Stock to Buy:
Enova (ENVA)
Rolling One-Year Beta: 1.55
Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International (NYSE: ENVA) provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.
Why Are We Backing ENVA?
- Impressive 22.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 34.1% exceeded its revenue gains over the last two years
- Annual book value per share growth of 22% over the past five years was outstanding, reflecting strong capital accumulation this cycle
Enova is trading at $135.46 per share, or 9.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 Growth Stocks for this month. 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 Exlservice (+354% 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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