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.
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 are two volatile stocks with massive upside potential and one that could just as easily collapse.
One Stock to Sell:
International Paper (IP)
Rolling One-Year Beta: 1.14
Established in 1898, International Paper (NYSE:IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
Why Do We Avoid IP?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.4% over the last five years was below our standards for the industrials sector
- Free cash flow margin dropped by 11.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $42.85 per share, International Paper trades at 26.7x forward P/E. Read our free research report to see why you should think twice about including IP in your portfolio.
Two Stocks to Buy:
Airbnb (ABNB)
Rolling One-Year Beta: 1.51
Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Why Will ABNB Outperform?
- Has the opportunity to boost monetization through new features and premium offerings as its nights and experiences booked have grown by 9.4% annually over the last two years
- Highly efficient business model is illustrated by its impressive 36.4% EBITDA margin, and it turbocharged its profits by achieving some fixed cost leverage
- Strong free cash flow margin of 37.8% enables it to reinvest or return capital consistently
Airbnb is trading at $133.56 per share, or 15.8x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Carlyle (CG)
Rolling One-Year Beta: 1.90
Founded in 1987 with just $5 million in capital and named after the iconic New York hotel where the founders first met, The Carlyle Group (NASDAQ:CG) is a global investment firm that raises, manages, and deploys capital across private equity, credit, and investment solutions.
Why Is CG a Good Business?
- Decent 10.9% annual revenue growth over the last five years beat most of its peers, showing customers find value in its products and services
- Fee-related earnings improved by 23.6% annually over the last two years as it eliminated redundant costs
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 23.9% annually, topping its revenue gains
Carlyle’s stock price of $62.40 implies a valuation ratio of 13.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.