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3 Volatile Stocks with Warning Signs

MNRO Cover Image

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. That said, here are three volatile stocks best left to the gamblers and some better opportunities instead.

Monro (MNRO)

Rolling One-Year Beta: 1.29

Started as a single location in Rochester, New York, Monro (NASDAQ: MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.

Why Do We Pass on MNRO?

  1. Store closures and disappointing same-store sales suggest demand is sluggish and it’s rightsizing its operations
  2. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  3. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 29.9% annually, worse than its revenue

Monro’s stock price of $20.54 implies a valuation ratio of 38.5x forward P/E. Read our free research report to see why you should think twice about including MNRO in your portfolio.

Sotera Health Company (SHC)

Rolling One-Year Beta: 1.27

With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.

Why Does SHC Worry Us?

  1. Smaller revenue base of $1.15 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
  2. Estimated sales growth of 4.2% for the next 12 months implies demand will slow from its two-year trend
  3. 9.7 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Sotera Health Company is trading at $16.80 per share, or 18.3x forward P/E. If you’re considering SHC for your portfolio, see our FREE research report to learn more.

Great Lakes Dredge & Dock (GLDD)

Rolling One-Year Beta: 1.43

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ: GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Why Does GLDD Give Us Pause?

  1. Average backlog growth of 4.2% over the past two years was mediocre and suggests fewer customers signed long-term contracts
  2. High input costs result in an inferior gross margin of 16.9% that must be offset through higher volumes
  3. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

At $13.86 per share, Great Lakes Dredge & Dock trades at 14.6x forward P/E. Dive into our free research report to see why there are better opportunities than GLDD.

Stocks We Like More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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