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 are three volatile stocks to avoid and some better opportunities instead.
iHeartMedia (IHRT)
Rolling One-Year Beta: 2.28
Occasionally featuring celebrity hosts like Ryan Seacrest on its shows, iHeartMedia (NASDAQ: IHRT) is a leading multimedia company renowned for its extensive network of radio stations, digital platforms, and live events across the globe.
Why Should You Sell IHRT?
- Sales were flat over the last two years, indicating it’s failed to expand its business
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
iHeartMedia is trading at $2.76 per share, or 0.6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including IHRT in your portfolio.
Trinity (TRN)
Rolling One-Year Beta: 1.37
Operating under the trade name TrinityRail, Trinity (NYSE: TRN) is a provider of railcar products and services in North America.
Why Do We Avoid TRN?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2% annually over the last five years
- Estimated sales decline of 11.1% for the next 12 months implies a challenging demand environment
- Free cash flow margin dropped by 9.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
At $28.11 per share, Trinity trades at 17.9x forward P/E. Dive into our free research report to see why there are better opportunities than TRN.
Fortrea (FTRE)
Rolling One-Year Beta: 2.06
Spun off from Labcorp in 2023 to focus exclusively on clinical research services, Fortrea (NASDAQ: FTRE) is a contract research organization that helps pharmaceutical, biotech, and medical device companies develop and bring their products to market through clinical trials and support services.
Why Are We Out on FTRE?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.6% annually over the last two years
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Fortrea’s stock price of $9.69 implies a valuation ratio of 16x forward P/E. If you’re considering FTRE for your portfolio, see our FREE research report to learn more.
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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).
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