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1 Volatile Stock to Own for Decades and 2 to Brush Off

LOVE Cover Image

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. That said, here is one volatile stock that could deliver huge gains and two best left to the gamblers.

Two Stocks to Sell:

Lovesac (LOVE)

Rolling One-Year Beta: 2.02

Known for its oversized, premium beanbags, Lovesac (NASDAQ: LOVE) is a specialty furniture brand selling modular furniture.

Why Is LOVE Not Exciting?

  1. Muted 1.7% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
  2. Poor free cash flow margin of 1% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
  3. Waning returns on capital imply its previous profit engines are losing steam

At $18.22 per share, Lovesac trades at 5.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why LOVE doesn’t pass our bar.

WillScot Mobile Mini (WSC)

Rolling One-Year Beta: 1.77

Originally focusing on mobile offices for construction sites, WillScot (NASDAQ: WSC) provides ready-to-use temporary spaces, largely for longer-term lease.

Why Are We Cautious About WSC?

  1. Sales trends were unexciting over the last two years as its 2.4% annual growth was below the typical industrials company
  2. Incremental sales over the last two years were much less profitable as its earnings per share fell by 3.4% annually while its revenue grew
  3. 5 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

WillScot Mobile Mini is trading at $27.42 per share, or 16.5x forward P/E. If you’re considering WSC for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Natera (NTRA)

Rolling One-Year Beta: 1.07

Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ: NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.

Why Are We Bullish on NTRA?

  1. Average unit sales growth of 23.1% over the past two years reflects steady demand for its products
  2. Adjusted operating margin expanded by 47.6 percentage points over the last two years as it scaled and became more efficient
  3. Free cash flow turned positive over the last five years, indicating the company has passed a significant test

Natera’s stock price of $164.50 implies a valuation ratio of 10.8x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. 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 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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