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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.

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 best left to the gamblers.

Two Stocks to Sell:

Caesars Entertainment (CZR)

Rolling One-Year Beta: 1.63

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

Why Do We Think Twice About CZR?

1. Sales were flat over the last two years, indicating it's failed to expand its business

2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 25.8% annually while its revenue grew

3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Caesars Entertainment is trading at $27.05 per share, or 1.5x forward EV-to-EBITDA. To fully understand why you should be careful with CZR, check out our full research report (it’s free).

APi (APG)

Rolling One-Year Beta: 1.13

Started in 1926 as an insulation contractor, APi (NYSE:APG) provides life safety solutions and specialty services for buildings and infrastructure.

Why Are We Cautious About APG?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy

2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.9 percentage points

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

At $46.76 per share, APi trades at 22.1x forward P/E. Dive into our free research report to see why there are better opportunities than APG.

One Stock to Buy:

KLA Corporation (KLAC)

Rolling One-Year Beta: 1.88

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.

Why Are We Bullish on KLAC?

1. Market share has increased this cycle as its 15.6% annual revenue growth over the last five years was exceptional

2. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 35.9%, and its operating leverage amplified its profits over the last five years

3. KLAC is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders