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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here are three volatile stocks to avoid and some better opportunities instead.
Texas Instruments (TXN)
Rolling One-Year Beta: 1.08
Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ: TXN) is the world’s largest producer of analog semiconductors.
Why Are We Wary of TXN?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2.4% annually over the last two years
- Efficiency has decreased over the last five years as its operating margin fell by 13.5 percentage points
- Free cash flow margin shrank by 28.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Texas Instruments’s stock price of $176.37 implies a valuation ratio of 30.1x forward P/E. Dive into our free research report to see why there are better opportunities than TXN.
Bloomin' Brands (BLMN)
Rolling One-Year Beta: 1.06
Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ: BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Why Do We Steer Clear of BLMN?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Sales are projected to be flat over the next 12 months and imply weak demand
- High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens
At $6.89 per share, Bloomin' Brands trades at 7.4x forward P/E. If you’re considering BLMN for your portfolio, see our FREE research report to learn more.
American Woodmark (AMWD)
Rolling One-Year Beta: 1.22
Starting as a small millwork shop, American Woodmark (NASDAQ: AMWD) is a cabinet manufacturing company that helps customers from inspiration to installation.
Why Should You Sell AMWD?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Projected sales decline of 3.5% over the next 12 months indicates demand will continue deteriorating
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
American Woodmark is trading at $54.55 per share, or 26.9x forward P/E. Dive into our free research report to see why there are better opportunities than AMWD.
High-Quality Stocks for All Market Conditions
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 5 Growth Stocks for this month. 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.
