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. Keeping that in mind, here are three volatile stocks to avoid and some better opportunities instead.
Spectrum Brands (SPB)
Rolling One-Year Beta: 1.23
A leader in multiple consumer product categories, Spectrum Brands (NYSE: SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.
Why Do We Think SPB Will Underperform?
- 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
- Projected sales for the next 12 months are flat and suggest demand will be subdued
- ROIC of 0.9% reflects management’s challenges in identifying attractive investment opportunities
Spectrum Brands is trading at $59.35 per share, or 13.4x forward P/E. Dive into our free research report to see why there are better opportunities than SPB.
United Airlines (UAL)
Rolling One-Year Beta: 1.53
Founded in 1926, United Airlines Holdings (NASDAQ: UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes.
Why Do We Pass on UAL?
- Demand for its offerings was relatively low as its number of revenue passenger miles has underwhelmed
- Operating profits are forecasted to increase over the next year as it scales and becomes more efficient
- Low free cash flow margin of 3.5% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
United Airlines’s stock price of $101.79 implies a valuation ratio of 8.3x forward P/E. Read our free research report to see why you should think twice about including UAL in your portfolio.
Old National Bank (ONB)
Rolling One-Year Beta: 1.31
Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ: ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.
Why Are We Cautious About ONB?
- Muted 9.5% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Earnings per share fell by 2.1% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Muted 3.5% annual tangible book value per share growth over the last five years shows its capital generation lagged behind its banking peers
At $21.73 per share, Old National Bank trades at 1x forward P/B. Check out our free in-depth research report to learn more about why ONB doesn’t pass our bar.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. 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
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