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3 Volatile Stocks We Steer Clear Of

KLIC Cover Image

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. Keeping that in mind, here are three volatile stocks best left to the gamblers and some better opportunities instead.

Kulicke and Soffa (KLIC)

Rolling One-Year Beta: 1.38

Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices

Why Are We Hesitant About KLIC?

  1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
  2. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 27.7 percentage points
  3. Sales over the last five years were less profitable as its earnings per share fell by 26.9% annually while its revenue was flat

At $48.54 per share, Kulicke and Soffa trades at 31.7x forward P/E. If you’re considering KLIC for your portfolio, see our FREE research report to learn more.

United Parks & Resorts (PRKS)

Rolling One-Year Beta: 1.06

Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.

Why Should You Dump PRKS?

  1. Sluggish trends in its visitors suggest customers aren’t adopting its solutions as quickly as the company hoped
  2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 11.8% for the last two years
  3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

United Parks & Resorts’s stock price of $35.54 implies a valuation ratio of 9.4x forward P/E. Read our free research report to see why you should think twice about including PRKS in your portfolio.

YETI (YETI)

Rolling One-Year Beta: 1.19

Founded by two brothers from Texas, YETI (NYSE: YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.

Why Are We Out on YETI?

  1. Muted 12.6% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
  2. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 13.7 percentage points
  3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

YETI is trading at $43.39 per share, or 15.9x forward P/E. Check out our free in-depth research report to learn more about why YETI doesn’t pass our bar.

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 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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