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. That said, here is one volatile stock that could deliver huge gains and two that might not be worth the risk.

Two Stocks to Sell:

The RealReal (REAL)

Rolling One-Year Beta: 2.89

Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.

Why Are We Hesitant About REAL?

1. Struggled with new customer acquisition as its active buyers averaged 7.7% declines

2. Negative free cash flow raises questions about the return timeline for its investments

3. High net-debt-to-EBITDA ratio of 23× increases the risk of forced asset sales or dilutive financing if operational performance weakens

The RealReal’s stock price of $6.02 implies a valuation ratio of 24.1x forward EV-to-EBITDA. To fully understand why you should be careful with REAL, check out our full research report (it’s free) .

L.B. Foster (FSTR)

Rolling One-Year Beta: 1.98

Founded with a $2,500 loan, L.B. Foster (NASDAQ:FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.

Why Do We Think FSTR Will Underperform?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.5% annually over the last five years

2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

3. Underwhelming 4.9% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $19.61 per share, L.B. Foster trades at 4.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why FSTR doesn’t pass our bar .

One Stock to Watch:

Upwork (UPWK)

Rolling One-Year Beta: 1.21

Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ:UPWK) is an online platform where businesses and independent professionals connect to get work done.

Why Does UPWK Stand Out?

1. Monetization efforts are paying off as its average revenue per customer has grown by 8.4% annually over the last two years

2. Additional sales over the last three years increased its profitability as the 168% annual growth in its earnings per share outpaced its revenue

3. Free cash flow margin jumped by 21.1 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends