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.

These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here is one volatile stock with massive upside potential and two that could just as easily collapse.

Two Stocks to Sell:

Soho House (SHCO)

Rolling One-Year Beta: 1.17

Boasting fancy locations in hubs such as NYC and Miami, Soho House (NYSE: SHCO) is a global hospitality brand offering exclusive private member clubs, hotels, and restaurants.

Why Do We Think Twice About SHCO?

1. Sluggish trends in its members suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Cash-burning history makes us doubt the long-term viability of its business model
3. High net-debt-to-EBITDA ratio of 5× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $8.83 per share, Soho House trades at 9.7x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SHCO doesn’t pass our bar.

U.S. Bancorp (USB)

Rolling One-Year Beta: 1.24

With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE: USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses.

Why Are We Wary of USB?

1. Sizable revenue base leads to growth challenges as its 4.9% annual net interest income increases over the last five years fell short of other banking companies
2. Inferior net interest margin of 2.7% means it must compensate for lower profitability through increased loan originations
3. Large asset base makes it harder to grow tangible book value per share quickly, and its annual tangible book value per share growth of 2% over the last five years was below our standards for the banking sector

U.S. Bancorp’s stock price of $48.54 implies a valuation ratio of 1.3x forward P/B. If you’re considering USB for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Hamilton Lane (HLNE)

Rolling One-Year Beta: 1.24

With over $100 billion in assets under management and supervision, Hamilton Lane (NASDAQ: HLNE) is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors.

Why Are We Backing HLNE?

1. Market share has increased this cycle as its 21.1% annual revenue growth over the last five years was exceptional
2. Share buybacks catapulted its annual earnings per share growth to 23%, which outperformed its revenue gains over the last two years
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

Hamilton Lane is trading at $143.78 per share, or 30.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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