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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here is one volatile stock that could deliver huge gains and two best left to the gamblers.
Two Stocks to Sell:
Caesars Entertainment (CZR)
Rolling One-Year Beta: 1.63
Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ: CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties.
Why Do We Think Twice About CZR?
- Sales were flat over the last two years, indicating it's failed to expand its business
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 25.8% annually while its revenue grew
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Caesars Entertainment is trading at $27.05 per share, or 1.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why CZR doesn’t pass our bar.
APi (APG)
Rolling One-Year Beta: 1.13
Started in 1926 as an insulation contractor, APi (NYSE: APG) provides life safety solutions and specialty services for buildings and infrastructure.
Why Are We Cautious About APG?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.9 percentage points
- Underwhelming 3% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $46.76 per share, APi trades at 22.1x forward P/E. Dive into our free research report to see why there are better opportunities than APG.
One Stock to Buy:
KLA Corporation (KLAC)
Rolling One-Year Beta: 1.88
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ: KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
Why Are We Bullish on KLAC?
- Market share has increased this cycle as its 15.6% annual revenue growth over the last five years was exceptional
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 35.9%, and its operating leverage amplified its profits over the last five years
- KLAC is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
KLA Corporation’s stock price of $769.80 implies a valuation ratio of 24.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
