Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here is one volatile stock that could deliver huge gains and two that could just as easily collapse.
Two Stocks to Sell:
National Vision (EYE)
Rolling One-Year Beta: 1.18
Operating under multiple brands, National Vision (NYSE:EYE) sells optical products such as eyeglasses and provides optical services such as eye exams.
Why Should You Sell EYE?
- Annual revenue declines of 1.6% over the last three years indicate problems with its market positioning
- Recent store closures reflect a shift toward streamlining existing locations to maximize efficiency
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its decreasing returns suggest its historical profit centers are aging
At $26.66 per share, National Vision trades at 29.7x forward P/E. Check out our free in-depth research report to learn more about why EYE doesn’t pass our bar.
Spectrum Brands (SPB)
Rolling One-Year Beta: 1.23
A leader in multiple consumer product categories, Spectrum Brands (NYSE:SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.
Why Do We Steer Clear of SPB?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Underwhelming 0.9% return on capital reflects management’s difficulties in finding profitable growth opportunities
Spectrum Brands is trading at $64.69 per share, or 14.6x forward P/E. Dive into our free research report to see why there are better opportunities than SPB.
One Stock to Buy:
The Bancorp (TBBK)
Rolling One-Year Beta: 1.31
Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ:TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.
Why Is TBBK a Good Business?
- Annual net interest income growth of 16.2% over the last five years was superb and indicates its market share increased during this cycle
- Differentiated product suite results in a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds result in a best-in-class net interest margin of 4.6%
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 33% exceeded its revenue gains over the last five years
The Bancorp’s stock price of $67.23 implies a valuation ratio of 4.4x forward P/B. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
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 6 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.