1 Volatile Stock with Competitive Advantages and 2 We Ignore

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 is one volatile stock that could reward patient investors and two best left to the gamblers.

Two Stocks to Sell:

Commerce (CMRC)

Rolling One-Year Beta: 1.16

As a founding member of the MACH Alliance advocating for modern tech standards, Commerce (NASDAQ:CMRC) provides a SaaS platform that enables businesses to build and manage online stores, connect with marketplaces, and integrate with point-of-sale systems.

Why Should You Dump CMRC?

1. Products, pricing, or go-to-market strategy may need some adjustments as its 2.4% average billings growth over the last year was weak
2. Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its two-year trend
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Commerce’s stock price of $3.76 implies a valuation ratio of 0.9x forward price-to-sales. To fully understand why you should be careful with CMRC, check out our full research report (it’s free).

Caesars Entertainment (CZR)

Rolling One-Year Beta: 1.69

Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ:CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties.

Why Is CZR Risky?

1. Sales were flat over the last two years, indicating it’s failed to expand its business
2. Poor free cash flow margin of 1.2% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Caesars Entertainment is trading at $24.34 per share, or 7.9x forward EV-to-EBITDA. If you’re considering CZR for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Acuity Brands (AYI)

Rolling One-Year Beta: 1.22

One of the pioneers of smart lights, Acuity (NYSE:AYI) designs and manufactures light fixtures and building management systems used in various industries.

Why Do We Like AYI?

1. Offerings are mission-critical for businesses and result in a premier gross margin of 44.8%
2. Share repurchases over the last five years enabled its annual earnings per share growth of 18.1% to outpace its revenue gains
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

At $320.43 per share, Acuity Brands trades at 15.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Check out the high-quality names we’ve flagged in 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.