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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here is one volatile stock that could deliver huge gains and two best left to the gamblers.
Two Stocks to Sell:
Chegg (CHGG)
Rolling One-Year Beta: 2.85
Started as a physical textbook rental service, Chegg (NYSE: CHGG) is now a digital platform addressing student pain points by providing study and academic assistance.
Why Should You Sell CHGG?
- Services Subscribers have declined by 18.9% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
- EBITDA profits fell over the last few years as its sales dropped and it struggled to adjust its fixed costs
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
At $0.75 per share, Chegg trades at 1.9x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than CHGG.
Astec (ASTE)
Rolling One-Year Beta: 1.49
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ: ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Why Does ASTE Fall Short?
- Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 28.2% declines over the past two years
- Gross margin of 23.9% reflects its high production costs
- Cash-burning history makes us doubt the long-term viability of its business model
Astec’s stock price of $48.34 implies a valuation ratio of 15.5x forward P/E. If you’re considering ASTE for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Howmet (HWM)
Rolling One-Year Beta: 1.38
Inventing the first forged aluminum truck wheel, Howmet (NYSE: HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Why Are We Backing HWM?
- Market share has increased this cycle as its 11.4% annual revenue growth over the last two years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 42.7% exceeded its revenue gains over the last two years
- Free cash flow margin expanded by 13.8 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Howmet is trading at $215.65 per share, or 51.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
