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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here are three volatile stocks to avoid and some better opportunities instead.
Entegris (ENTG)
Rolling One-Year Beta: 2.16
With fabs representing the company’s largest customer type, Entegris (NASDAQ: ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.
Why Do We Avoid ENTG?
- Sales tumbled by 6.1% annually over the last two years, showing market trends are working against its favor during this cycle
- Anticipated sales growth of 2.6% for the next year implies demand will be shaky
- Lacking free cash flow margin got worse over the last five years as its investment needs accelerated
At $88.66 per share, Entegris trades at 4.2x forward price-to-sales. If you’re considering ENTG for your portfolio, see our FREE research report to learn more.
MGP Ingredients (MGPI)
Rolling One-Year Beta: 1.20
Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ: MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry
Why Do We Steer Clear of MGPI?
- Annual revenue declines of 8.6% over the last three years indicate problems with its market positioning
- Forecasted revenue decline of 12% for the upcoming 12 months implies demand will fall even further
- Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs
MGP Ingredients is trading at $24.14 per share, or 9.7x forward P/E. To fully understand why you should be careful with MGPI, check out our full research report (it’s free for active Edge members).
Saia (SAIA)
Rolling One-Year Beta: 1.15
Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ: SAIA) is a provider of freight transportation solutions.
Why Does SAIA Worry Us?
- Disappointing tons shipped over the past two years imply it may need to invest in improvements to get back on track
- Free cash flow margin shrank by 7.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Waning returns on capital imply its previous profit engines are losing steam
Saia’s stock price of $281.07 implies a valuation ratio of 12.1x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SAIA doesn’t pass our bar.
Stocks We Like More
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at 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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