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.
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 reward patient investors and two best left to the gamblers.
Two Stocks to Sell:
Genesco (GCO)
Rolling One-Year Beta: 1.97
Spanning a broad range of styles, brands, and prices, Genesco (NYSE: GCO) sells footwear, apparel, and accessories through multiple brands and banners.
Why Are We Out on GCO?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- High net-debt-to-EBITDA ratio could force the company to raise capital at unfavorable terms if market conditions deteriorate
At $24.77 per share, Genesco trades at 15.8x forward P/E. Read our free research report to see why you should think twice about including GCO in your portfolio.
Seacoast Banking (SBCF)
Rolling One-Year Beta: 1.08
Founded during the Florida land boom of 1926 and surviving the Great Depression, Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is a financial holding company that provides commercial and retail banking, wealth management, and mortgage services throughout Florida.
Why Do We Steer Clear of SBCF?
- Muted 1.5% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 1.5% annually while its revenue grew
- Forecasted tangible book value per share decline of 1.8% for the upcoming 12 months implies profitability will deteriorate significantly
Seacoast Banking’s stock price of $31.42 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why SBCF doesn’t pass our bar.
One Stock to Buy:
DXP (DXPE)
Rolling One-Year Beta: 1.90
Founded during the emergence of Big Oil in Texas, DXP (NASDAQ: DXPE) provides pumps, valves, and other industrial components.
Why Should You Buy DXPE?
- Annual revenue growth of 13% over the last five years was superb and indicates its market share increased during this cycle
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 27.4% exceeded its revenue gains over the last two years
DXP is trading at $109.79 per share, or 17.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 5 Growth Stocks for this month. 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-micro-cap company Kadant (+351% 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.
