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1 Volatile Stock with Exciting Potential and 2 We Question

EME Cover Image

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 best left to the gamblers.

Two Stocks to Sell:

Alta (ALTG)

Rolling One-Year Beta: 2.23

Founded in 1984, Alta Equipment Group (NYSE: ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.

Why Are We Out on ALTG?

  1. Sales trends were unexciting over the last two years as its 1.1% annual growth was below the typical industrials company
  2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Alta’s stock price of $6.94 implies a valuation ratio of 6.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why ALTG doesn’t pass our bar.

U.S. Bancorp (USB)

Rolling One-Year Beta: 1.21

With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE: USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses.

Why Are We Hesitant About USB?

  1. Scale is a double-edged sword because it limits the firm’s growth potential compared to its smaller competitors, as reflected in its below-average annual net interest income increases of 5.4% for the last five years
  2. Net interest margin of 2.7% reflects its high servicing and capital costs
  3. Scale is a double-edged sword because it limits the firm’s capital growth potential compared to its smaller competitors, as reflected in its below-average annual tangible book value per share increases of 3.3% for the last five years

U.S. Bancorp is trading at $58.91 per share, or 1.5x forward P/B. If you’re considering USB for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

EMCOR (EME)

Rolling One-Year Beta: 1.49

Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services

Why Should You Buy EME?

  1. Annual revenue growth of 15.9% over the past two years was outstanding, reflecting market share gains this cycle
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 47.4% exceeded its revenue gains over the last two years
  3. Improving returns on capital reflect management’s ability to monetize investments

At $811.44 per share, EMCOR trades at 28.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 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.

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