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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here is one volatile stock that could deliver huge gains and two best left to the gamblers.
Two Stocks to Sell:
EchoStar (SATS)
Rolling One-Year Beta: 1.40
Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ: SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.
Why Should You Dump SATS?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.6% annually over the last two years
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- EBITDA losses may force it to accept punitive lending terms or high-cost debt
At $68.70 per share, EchoStar trades at 8x forward EV-to-EBITDA. To fully understand why you should be careful with SATS, check out our full research report (it’s free for active Edge members).
Bank of America (BAC)
Rolling One-Year Beta: 1.31
Tracing its roots back to 1784 and now serving approximately 67 million consumer and small business clients, Bank of America (NYSE: BAC) is a global financial institution that provides banking, investing, asset management, and risk management products and services to individuals, businesses, and governments.
Why Does BAC Worry Us?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3% over the last two years was below our standards for the banking sector
- Annual net interest income growth of 5.3% over the last five years lagged behind its banking peers as its large revenue base made it difficult to generate incremental demand
- Net interest margin of 2% reflects its high servicing and capital costs
Bank of America’s stock price of $52.78 implies a valuation ratio of 1.4x forward P/B. Check out our free in-depth research report to learn more about why BAC doesn’t pass our bar.
One Stock to Watch:
Limbach (LMB)
Rolling One-Year Beta: 1.16
Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.
Why Could LMB Be a Winner?
- Efficiency rose over the last five years as its Operating margin increased by 6 percentage points
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 42.5% outpaced its revenue gains
- Free cash flow margin grew by 8 percentage points over the last five years, giving the company more chips to play with
Limbach is trading at $71.14 per share, or 17.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
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 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 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
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