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.

At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here is one volatile stock that could reward patient investors and two that could just as easily collapse.

Two Stocks to Sell:

Five Below (FIVE)

Rolling One-Year Beta: 1.85

Often facilitating a treasure hunt shopping experience, Five Below (NASDAQ: FIVE) is an American discount retailer that sells a variety of products from mobile phone cases to candy to sports equipment for largely $5 or less.

Why Is FIVE Not Exciting?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
2. Smaller revenue base of $4.04 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up

At $132.95 per share, Five Below trades at 28.4x forward P/E. If you’re considering FIVE for your portfolio, see our FREE research report to learn more.

Brighthouse Financial (BHF)

Rolling One-Year Beta: 1.12

Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial (NASDAQ: BHF) provides annuity contracts and life insurance products designed to help individuals protect wealth, generate income, and transfer assets.

Why Do We Avoid BHF?

1. Insurance products are facing significant market challenges during this cycle as net premiums earned has declined by 2.4% annually over the last five years
2. Efficiency has decreased over the last two years as its pre-tax profit margin fell by 19.5 percentage points
3. Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 14.9% annually over the last five years

Brighthouse Financial is trading at $53.34 per share, or 0.8x forward P/B. Dive into our free research report to see why there are better opportunities than BHF.

One Stock to Watch:

Dick's (DKS)

Rolling One-Year Beta: 1.15

Started as a hunting supply store, Dick’s Sporting Goods (NYSE: DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.

Why Could DKS Be a Winner?

1. Locations open for at least a year are seeing increased demand as same-store sales have averaged 4% growth over the past two years
2. Earnings per share have comfortably outperformed the peer group average over the last six years, increasing by 27.4% annually
3. Industry-leading 24.5% return on capital demonstrates management’s skill in finding high-return investments

Dick’s stock price of $206.23 implies a valuation ratio of 14.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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 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