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.

Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here is one volatile stock with massive upside potential and two that might not be worth the risk.

Two Stocks to Sell:

RH (RH)

Rolling One-Year Beta: 2.93

Formerly known as Restoration Hardware, RH (NYSE: RH) is a specialty retailer that exclusively sells its own brand of high-end furniture and home decor.

Why Are We Hesitant About RH?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

RH is trading at $202.97 per share, or 18.2x forward P/E. If you’re considering RH for your portfolio, see our FREE research report to learn more.

Ameresco (AMRC)

Rolling One-Year Beta: 1.30

Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE: AMRC) provides energy and renewable energy solutions for various sectors.

Why Are We Cautious About AMRC?

1. 6.1% annual revenue growth over the last two years was slower than its industrials peers
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $18.94 per share, Ameresco trades at 17.8x forward P/E. Read our free research report to see why you should think twice about including AMRC in your portfolio.

One Stock to Buy:

AZEK (AZEK)

Rolling One-Year Beta: 1.09

With a significant portion of its products made from recycled materials, AZEK (NYSE: AZEK) designs and manufactures goods for outdoor living spaces.

Why Are We Backing AZEK?

1. Impressive 12.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 56.9% exceeded its revenue gains over the last two years
3. Free cash flow margin increased by 8.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders

AZEK’s stock price of $54.35 implies a valuation ratio of 35.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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-small-cap company Exlservice (+354% 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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