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 best left to the gamblers and some better opportunities instead.
Lucky Strike (LUCK)
Rolling One-Year Beta: 1.55
Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike (NYSE: LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.
Why Do We Steer Clear of LUCK?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
- Eroding returns on capital suggest its historical profit centers are aging
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Lucky Strike’s stock price of $9.93 implies a valuation ratio of 94.4x forward P/E. Read our free research report to see why you should think twice about including LUCK in your portfolio.
Voya Financial (VOYA)
Rolling One-Year Beta: 1.17
Originally spun off from Dutch financial giant ING in 2013 and rebranded with a name suggesting "voyage," Voya Financial (NYSE: VOYA) provides workplace benefits and savings solutions to U.S. employers, helping their employees achieve better financial outcomes through retirement plans and insurance products.
Why Do We Think Twice About VOYA?
- 6.9% annual revenue growth over the last five years was slower than its financials peers
- Performance over the past two years shows its incremental sales were less profitable as its earnings per share were flat
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 16.4% annually over the last five years
At $74.54 per share, Voya Financial trades at 8.1x forward P/E. If you’re considering VOYA for your portfolio, see our FREE research report to learn more.
BankUnited (BKU)
Rolling One-Year Beta: 1.29
Born from the ashes of a failed Florida thrift during the 2009 financial crisis, BankUnited (NYSE: BKU) is a regional bank that provides commercial lending, deposit services, and treasury solutions to businesses and consumers primarily in Florida and the New York metropolitan area.
Why Does BKU Give Us Pause?
- Net interest income trends were unexciting over the last five years as its 5.3% annual growth was below the typical banking firm
- Weak unit economics are reflected in its net interest margin of 2.7%, one of the worst among bank companies
- Anticipated 25.4 percentage point rise in its efficiency ratio suggests its expenses will increase as a percentage of revenue
BankUnited is trading at $40.02 per share, or 1x forward P/B. Dive into our free research report to see why there are better opportunities than BKU.
High-Quality Stocks for All Market Conditions
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 6 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-small-cap company Exlservice (+354% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
