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 are two volatile stocks that could deliver huge gains and one that might not be worth the risk.

One Stock to Sell:

Victoria's Secret (VSCO)

Rolling One-Year Beta: 2.15

Spun off from L Brands in 2020, Victoria’s Secret (NYSE: VSCO) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.

Why Is VSCO Risky?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. Poor expense management has led to an operating margin of 4.5% that is below the industry average
3. Earnings per share have dipped by 23.9% annually over the past three years, which is concerning because stock prices follow EPS over the long term

At $28.45 per share, Victoria's Secret trades at 15.5x forward P/E. Read our free research report to see why you should think twice about including VSCO in your portfolio.

Two Stocks to Watch:

BGC (BGC)

Rolling One-Year Beta: 1.28

Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group (NASDAQ: BGC) operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.

Why Could BGC Be a Winner?

1. Market share has increased this cycle as its 16.8% annual revenue growth over the last two years was exceptional
2. Incremental sales over the last two years boosted profitability as its annual earnings per share growth of 21.7% outstripped its revenue performance
3. ROE of 10.9% shows management can invest its resources competently

BGC’s stock price of $8.82 implies a valuation ratio of 7.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Axos Financial (AX)

Rolling One-Year Beta: 1.26

Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial (NYSE: AX) is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.

Why Will AX Beat the Market?

1. Market share has increased this cycle as its 15.9% annual net interest income growth over the last five years was exceptional
2. Differentiated product suite results in a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds lead to a best-in-class net interest margin of 4.8%
3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 18% annually

Axos Financial is trading at $81.57 per share, or 1.5x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. 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

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.