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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here are three volatile stocks to steer clear of and a few better alternatives.
Teladoc (TDOC)
Rolling One-Year Beta: 1.58
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE: TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Why Does TDOC Fall Short?
- Lackluster 2.9% annual revenue growth over the last three years indicates the company is losing ground to competitors
- Decision to emphasize platform growth over monetization has contributed to 7.9% annual declines in its average revenue per user
- Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
At $6.97 per share, Teladoc trades at 5.2x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than TDOC.
Carnival (CCL)
Rolling One-Year Beta: 1.61
Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE: CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.
Why Is CCL Risky?
- Performance surrounding its passenger cruise days has lagged its peers
- Poor free cash flow margin of 7.6% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Negative returns on capital show management lost money while trying to expand the business
Carnival’s stock price of $30.72 implies a valuation ratio of 12.2x forward P/E. If you’re considering CCL for your portfolio, see our FREE research report to learn more.
Corebridge Financial (CRBG)
Rolling One-Year Beta: 1.39
Spun off from insurance giant AIG in 2022 to focus on the growing retirement market, Corebridge Financial (NYSE: CRBG) provides retirement solutions, annuities, life insurance, and institutional risk management products in the United States.
Why Does CRBG Worry Us?
- Insurance offerings face significant market challenges this cycle as net premiums earned contracted by 15.4% annually over the last two years
- Expenses have increased as a percentage of revenue over the last four years as its pre-tax profit margin fell by 22.4 percentage points
- High debt-to-equity ratio of 1.1× shows the firm carries too much debt relative to shareholder equity, increasing bankruptcy risk
Corebridge Financial is trading at $30.45 per share, or 1.2x forward P/B. To fully understand why you should be careful with CRBG, check out our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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.
