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.
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.
MongoDB (MDB)
Rolling One-Year Beta: 1.74
Started in 2007 by the team behind Google’s ad platform, DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
Why Do We Think Twice About MDB?
- Historical operating margin losses show it had an inefficient cost structure while scaling
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
MongoDB’s stock price of $205.25 implies a valuation ratio of 7x forward price-to-sales. Read our free research report to see why you should think twice about including MDB in your portfolio.
Carrier Global (CARR)
Rolling One-Year Beta: 1.20
Founded by the inventor of air conditioning, Carrier Global (NYSE: CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.
Why Are We Hesitant About CARR?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Free cash flow margin shrank by 5.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Diminishing returns on capital suggest its earlier profit pools are drying up
Carrier Global is trading at $75 per share, or 24.5x forward P/E. To fully understand why you should be careful with CARR, check out our full research report (it’s free).
Crane (CR)
Rolling One-Year Beta: 1.23
Based in Connecticut, Crane (NYSE: CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Why Do We Steer Clear of CR?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 6.3%
- Earnings per share were flat over the last five years and fell short of the peer group average
At $192.42 per share, Crane trades at 34x forward P/E. Dive into our free research report to see why there are better opportunities than CR.
Stocks We Like More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 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
