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.

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 are two volatile stocks with massive upside potential and one that could just as easily collapse.

One Stock to Sell:

Kura Sushi (KRUS)

Rolling One-Year Beta: 1.61

Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ: KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology.

Why Are We Wary of KRUS?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Kura Sushi’s stock price of $48.27 implies a valuation ratio of 27.6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including KRUS in your portfolio.

Two Stocks to Buy:

DoorDash (DASH)

Rolling One-Year Beta: 1.56

Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE: DASH) operates an on-demand food delivery platform.

Why Is DASH a Good Business?

1. Has the opportunity to boost monetization through new features and premium offerings as its orders have grown by 20% annually over the last two years
2. Incremental sales over the last three years have been highly profitable as its earnings per share increased by 1,009% annually, topping its revenue gains
3. Free cash flow margin increased by 12.6 percentage points over the last few years, giving the company more capital to invest or return to shareholders

At $201.88 per share, DoorDash trades at 24.9x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Sterling (STRL)

Rolling One-Year Beta: 2.18

Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ: STRL) provides civil infrastructure construction.

Why Will STRL Beat the Market?

1. Annual revenue growth of 9.4% over the last five years beat the sector average and underscores the unique value of its offerings
2. Free cash flow margin jumped by 8.7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
3. Rising returns on capital show management is finding more attractive investment opportunities

Sterling is trading at $340.72 per share, or 30.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

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 5 Strong Momentum 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 (+1,326% between June 2020 and June 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.