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 best left to the gamblers and some better opportunities instead.
Bumble (BMBL)
Rolling One-Year Beta: 1.26
Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ: BMBL) is a leading dating app built with women at the center.
Why Are We Hesitant About BMBL?
- Competition may be pulling attention away from its platform as its 4.8% average growth in paying users was choppy
- Platform has lost its luster lately as engagement trends have been sluggish and its average revenue per buyer has declined by 3.9% annually
- Estimated sales decline of 13.7% for the next 12 months implies a challenging demand environment
Bumble’s stock price of $3.55 implies a valuation ratio of 3.3x forward EV/EBITDA. If you’re considering BMBL for your portfolio, see our FREE research report to learn more.
Cushman & Wakefield (CWK)
Rolling One-Year Beta: 1.67
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE: CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Why Should You Dump CWK?
- Annual sales growth of 4.1% over the last five years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
- Low free cash flow margin of 2.2% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Cushman & Wakefield is trading at $16.34 per share, or 11.9x forward P/E. Check out our free in-depth research report to learn more about why CWK doesn’t pass our bar.
Quanex (NX)
Rolling One-Year Beta: 1.36
Starting in the seamless tube industry, Quanex (NYSE: NX) manufactures building products like window, door, kitchen, and bath cabinet components.
Why Do We Think Twice About NX?
- Efficiency has decreased over the last five years as its operating margin fell by 18.2 percentage points
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 8.5% annually
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $15.23 per share, Quanex trades at 7.4x forward P/E. Dive into our free research report to see why there are better opportunities than NX.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-small-cap company Comfort Systems (+782% 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.
