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.
Couchbase (BASE)
Rolling One-Year Beta: 1.29
Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ: BASE) is a database-as-a-service platform that allows enterprises to store large volumes of semi-structured data.
Why Do We Think Twice About BASE?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 6.6% underwhelmed
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
- Cash-burning history makes us doubt the long-term viability of its business model
Couchbase’s stock price of $19.86 implies a valuation ratio of 4.4x forward price-to-sales. Read our free research report to see why you should think twice about including BASE in your portfolio.
Stratasys (SSYS)
Rolling One-Year Beta: 1.11
Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ: SSYS) offers 3D printers and related materials, software, and services to many industries.
Why Do We Pass on SSYS?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.7% annually over the last five years
- Earnings per share decreased by more than its revenue over the last five years, partly because it diluted shareholders
- Cash burn makes us question whether it can achieve sustainable long-term growth
Stratasys is trading at $10.70 per share, or 33.8x forward P/E. If you’re considering SSYS for your portfolio, see our FREE research report to learn more.
3D Systems (DDD)
Rolling One-Year Beta: 2.14
Founded by the inventor of stereolithography, 3D Systems (NYSE: DDD) engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries.
Why Are We Out on DDD?
- Sales tumbled by 6.9% annually over the last five years, showing market trends are working against its favor during this cycle
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $1.86 per share, 3D Systems trades at 0.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than DDD.
Stocks We Like More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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.
