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. Keeping that in mind, here is one volatile stock with massive upside potential and two best left to the gamblers.
Two Stocks to Sell:
America's Car-Mart (CRMT)
Rolling One-Year Beta: 1.22
With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ: CRMT) sells used cars to budget-conscious consumers.
Why Do We Steer Clear of CRMT?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Issuance of new shares over the last three years caused its earnings per share to fall by 74.7% annually while its revenue grew
- 19× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
America's Car-Mart is trading at $25.28 per share, or 46.2x forward P/E. Check out our free in-depth research report to learn more about why CRMT doesn’t pass our bar.
P10 (PX)
Rolling One-Year Beta: 1.51
Operating as a bridge between institutional investors and hard-to-access private market opportunities, P10 (NYSE: PX) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.
Why Does PX Worry Us?
- Annual earnings per share growth of 7.1% underperformed its revenue over the last two years, showing its incremental sales were less profitable
- Below-average return on equity indicates management struggled to find compelling investment opportunities
P10’s stock price of $9.81 implies a valuation ratio of 9.5x forward P/E. Dive into our free research report to see why there are better opportunities than PX.
One Stock to Watch:
Carvana (CVNA)
Rolling One-Year Beta: 2.33
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Why Is CVNA Interesting?
- Retail Units Sold have increased by an average of 31.4% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 38.5% outpaced its revenue gains
- Free cash flow margin expanded by 19.3 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
At $422.64 per share, Carvana trades at 24.4x forward EV/EBITDA. Is now a good time to buy? Find out in our full 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 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.
