Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
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 may be too risky for most investors.
Two Stocks to Sell:
Oxford Industries (OXM)
Rolling One-Year Beta: 1.74
The parent company of Tommy Bahama, Oxford Industries (NYSE: OXM) is a lifestyle fashion conglomerate with brands that embody outdoor happiness.
Why Are We Out on OXM?
- Sales trends were unexciting over the last five years as its 8.2% annual growth was below the typical consumer discretionary company
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Oxford Industries’s stock price of $28.73 implies a valuation ratio of 12.8x forward P/E. Check out our free in-depth research report to learn more about why OXM doesn’t pass our bar.
Credit Acceptance (CACC)
Rolling One-Year Beta: 1.55
Founded in 1972 by Donald Foss to serve customers overlooked by traditional lenders, Credit Acceptance (NASDAQ: CACC) provides auto financing solutions that enable car dealers to sell vehicles to consumers with limited or impaired credit histories.
Why Do We Pass on CACC?
- 1.7% annual revenue growth over the last five years was slower than its financials peers
- Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
Credit Acceptance is trading at $582.31 per share, or 11.5x forward P/E. To fully understand why you should be careful with CACC, check out our full research report (it’s free).
One Stock to Buy:
Astronics (ATRO)
Rolling One-Year Beta: 1.77
Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.
Why Do We Love ATRO?
- Market share has increased this cycle as its 16.5% annual revenue growth over the last five years was exceptional
- Free cash flow margin expanded by 10.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
At $66.16 per share, Astronics trades at 22.2x 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
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
