Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here are three volatile stocks best left to the gamblers and some better opportunities instead.
America's Car-Mart (CRMT)
Rolling One-Year Beta: 1.21
With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ: CRMT) sells used cars to budget-conscious consumers.
Why Should You Sell CRMT?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Earnings per share have dipped by 30.7% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- 8× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
America's Car-Mart’s stock price of $19.51 implies a valuation ratio of 8.7x forward P/E. If you’re considering CRMT for your portfolio, see our FREE research report to learn more.
Academy Sports (ASO)
Rolling One-Year Beta: 1.41
Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ: ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.
Why Are We Hesitant About ASO?
- Sales trends were unexciting over the last six years as its 4% annual growth was below the typical consumer retail company
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
At $45.24 per share, Academy Sports trades at 7.1x forward P/E. Check out our free in-depth research report to learn more about why ASO doesn’t pass our bar.
Vestis (VSTS)
Rolling One-Year Beta: 1.46
Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis (NYSE: VSTS) provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada.
Why Are We Out on VSTS?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.5% annually over the last two years
- 9.8 percentage point decline in its free cash flow margin over the last four years reflects the company’s increased investments to defend its market position
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Vestis is trading at $5.41 per share, or 16.4x forward P/E. Read our free research report to see why you should think twice about including VSTS in your portfolio.
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 6 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 (+1,545% 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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