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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here is one volatile stock that could deliver huge gains and two that could just as easily collapse.
Two Stocks to Sell:
Kohl's (KSS)
Rolling One-Year Beta: 1.93
Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s (NYSE:KSS) is a department store chain that sells clothing, cosmetics, electronics, and home goods.
Why Should You Sell KSS?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Sales are projected to tank by 4.1% over the next 12 months as its demand continues evaporating
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Kohl's is trading at $15.72 per share, or 30.6x forward P/E. Read our free research report to see why you should think twice about including KSS in your portfolio.
Stifel (SF)
Rolling One-Year Beta: 1.43
Tracing its roots back to 1890 when the firm was established in St. Louis, Stifel Financial (NYSE:SF) is a financial services firm that provides wealth management, investment banking, and institutional brokerage services to individuals, corporations, and institutions.
Why Are We Cautious About SF?
- Sales trends were unexciting over the last five years as its 7.5% annual growth was below the typical financials company
- Annual earnings per share growth of 4.1% underperformed its revenue over the last two years, showing its incremental sales were less profitable
- Annual book value per share growth of 4% over the last two years was below our standards for the financials sector
Stifel’s stock price of $113.96 implies a valuation ratio of 12.8x forward P/E. Check out our free in-depth research report to learn more about why SF doesn’t pass our bar.
One Stock to Watch:
Columbia Banking System (COLB)
Rolling One-Year Beta: 1.23
Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ:COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.
Why Could COLB Be a Winner?
- Annual net interest income growth of 15.1% over the last five years was superb and indicates its market share increased during this cycle
- Exciting net interest income outlook for the upcoming 12 months calls for 39.2% growth, an acceleration from its five-year trend
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 13.3% annually, topping its revenue gains
At $25.89 per share, Columbia Banking System trades at 1x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.