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.
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 steer clear of and a few better alternatives.
Skillz (SKLZ)
Rolling One-Year Beta: 1.87
Taking a new twist at video gaming, Skillz (NYSE: SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.
Why Do We Pass on SKLZ?
- Struggled with new customer acquisition as its paying monthly active users averaged 24.5% declines
- Long-term business health is up for debate as its cash burn has increased over the last few years
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Skillz is trading at $6.62 per share, or 1x forward price-to-gross profit. To fully understand why you should be careful with SKLZ, check out our full research report (it’s free for active Edge members).
Crane (CR)
Rolling One-Year Beta: 1.14
Based in Connecticut, Crane (NYSE: CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Why Is CR Not Exciting?
- Annual sales declines of 5.2% for the past five years show its products and services struggled to connect with the market during this cycle
- 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
- Performance over the past two years was negatively impacted by new share issuances as its earnings per share grew slower than its revenue
At $191.86 per share, Crane trades at 30.7x forward P/E. Check out our free in-depth research report to learn more about why CR doesn’t pass our bar.
Morgan Stanley (MS)
Rolling One-Year Beta: 1.55
Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley (NYSE: MS) is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.
Why Does MS Worry Us?
- Annual tangible book value per share growth of 1.1% over the last five years lagged behind its financials peers as its large balance sheet made it difficult to generate incremental capital growth
Morgan Stanley’s stock price of $163.80 implies a valuation ratio of 16x forward P/E. If you’re considering MS for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
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 5 Strong Momentum Stocks for this week. 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 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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