3 Volatile Stocks We Think Twice About

VPG Cover Image

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.

Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here are three volatile stocks to avoid and some better opportunities instead.

Vishay Precision (VPG)

Rolling One-Year Beta: 1.33

Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE: VPG) operates as a global provider of precision measurement and sensing technologies.

Why Should You Sell VPG?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.2% annually over the last two years
  2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 17.4% annually
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Vishay Precision is trading at $35.32 per share, or 36.2x forward P/E. If you’re considering VPG for your portfolio, see our FREE research report to learn more.

Equifax (EFX)

Rolling One-Year Beta: 1.23

Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax (NYSE: EFX) is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.

Why Are We Hesitant About EFX?

  1. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 6.3 percentage points
  2. Performance over the past five years shows its incremental sales were less profitable, as its 4.5% annual earnings per share growth trailed its revenue gains
  3. Underwhelming 10.9% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its falling returns suggest its earlier profit pools are drying up

At $225.88 per share, Equifax trades at 27.9x forward P/E. Read our free research report to see why you should think twice about including EFX in your portfolio.

M&T Bank (MTB)

Rolling One-Year Beta: 1.11

Tracing its roots back to 1856 when it was founded as Manufacturers and Traders Bank in Buffalo, New York, M&T Bank (NYSE: MTB) is a regional bank holding company that provides retail and commercial banking, trust, wealth management, and investment services to consumers and businesses.

Why Does MTB Worry Us?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.3% annually over the last two years
  2. Estimated net interest income growth of 4.7% for the next 12 months implies demand will slow from its five-year trend
  3. 26 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position

M&T Bank’s stock price of $180.17 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with MTB, check out our full research report (it’s free for active Edge members).

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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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