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. That said, here is one volatile stock that could reward patient investors and two that could just as easily collapse.

Two Stocks to Sell:

Foot Locker (FL)

Rolling One-Year Beta: 2.55

Known for store associates whose uniforms resemble those of referees, Foot Locker (NYSE: FL) is a specialty retailer that sells athletic footwear, clothing, and accessories.

Why Should You Dump FL?

1. Store closures and disappointing same-store sales suggest demand is sluggish and it’s rightsizing its operations
2. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
3. 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Foot Locker’s stock price of $24.02 implies a valuation ratio of 0.3x trailing 12-month price-to-sales. Check out our free in-depth research report to learn more about why FL doesn’t pass our bar.

Liberty Broadband (LBRDK)

Rolling One-Year Beta: 1.12

Operating across the United States, Liberty Broadband (NASDAQ: LBRDK) is a provider of high-speed internet, cable television, and telecommunications services across various markets.

Why Are We Wary of LBRDK?

1. Sales trends were unexciting over the last two years as its 3.1% annual growth was below the typical business services company
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

Liberty Broadband is trading at $62.89 per share, or 51.1x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including LBRDK in your portfolio.

One Stock to Watch:

Light & Wonder (LNW)

Rolling One-Year Beta: 1.06

With names as crazy as Ultimate Fire Link Power 4 for its products, Light & Wonder (NASDAQ: LNW) is a gaming company supplying the casino industry with slot machines, table games, and digital games.

Why Does LNW Stand Out?

1. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 21.4%
2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Improving returns on capital suggest its past investments are beginning to deliver value

At $84.96 per share, Light & Wonder trades at 12.7x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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.