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. That said, here is one volatile stock with massive upside potential and two that could just as easily collapse.
Two Stocks to Sell:
Jack in the Box (JACK)
Rolling One-Year Beta: 1.13
Delighting customers since its inception in 1951, Jack in the Box (NASDAQ: JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.
Why Do We Steer Clear of JACK?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Earnings per share have contracted by 20% annually over the last six years, a headwind for returns as stock prices often echo long-term EPS performance
- 11× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Jack in the Box’s stock price of $18.10 implies a valuation ratio of 4.2x forward P/E. If you’re considering JACK for your portfolio, see our FREE research report to learn more.
Rush Enterprises (RUSHA)
Rolling One-Year Beta: 1.05
Headquartered in Texas, Rush Enterprises (NASDAQ: RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.
Why Do We Pass on RUSHA?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Sales are projected to tank by 5.8% over the next 12 months as demand evaporates further
- Earnings per share have dipped by 10.6% annually over the past two years, which is concerning because stock prices follow EPS over the long term
At $50.49 per share, Rush Enterprises trades at 15.8x forward P/E. To fully understand why you should be careful with RUSHA, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
IonQ (IONQ)
Rolling One-Year Beta: 2.61
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Are We Positive On IONQ?
- Market share has increased this cycle as its 78.9% annual revenue growth over the last two years was exceptional
- Market share is on track to rise over the next 12 months as its 156% projected revenue growth implies demand will accelerate from its two-year trend
- Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
IonQ is trading at $61.45 per share, or 111x forward price-to-sales. 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
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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