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.

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 that could deliver huge gains and one best left to the gamblers.

One Stock to Sell:

DXC (DXC)

Rolling One-Year Beta: 1.04

Born from the 2017 merger of Computer Sciences Corporation and HP Enterprise's services business, DXC Technology (NYSE: DXC) is a global IT services company that helps businesses transform their technology infrastructure, applications, and operations.

Why Do We Avoid DXC?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Earnings per share were flat over the last five years and fell short of the peer group average
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

DXC’s stock price of $15.53 implies a valuation ratio of 4.9x forward P/E. To fully understand why you should be careful with DXC, check out our full research report (it’s free for active Edge members).

Two Stocks to Watch:

Lululemon (LULU)

Rolling One-Year Beta: 1.21

Originally serving yogis and hockey players, Lululemon (NASDAQ: LULU) is a designer, distributor, and retailer of athletic apparel for men and women.

Why Is LULU a Good Business?

1. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 3.8% over the past two years
2. Collection of products is difficult to replicate at scale and leads to a best-in-class gross margin of 58.6%
3. Strong free cash flow margin of 12.8% enables it to reinvest or return capital consistently

Lululemon is trading at $215.22 per share, or 17.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

AZZ (AZZ)

Rolling One-Year Beta: 1.30

Responsible for projects like nuclear facilities, AZZ (NYSE: AZZ) is a provider of metal coating and power infrastructure solutions.

Why Does AZZ Stand Out?

1. Healthy operating margin of 15% shows it’s a well-run company with efficient processes, and its rise over the last five years was fueled by some leverage on its fixed costs
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 26% outpaced its revenue gains
3. Free cash flow margin increased by 23 percentage points over the last five years, giving the company more capital to invest or return to shareholders

At $107.91 per share, AZZ trades at 17.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

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 Growth Stocks for this month. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.