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. That said, here are three volatile stocks to avoid and some better opportunities instead.
Getty Images (GETY)
Rolling One-Year Beta: 1.31
With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE: GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.
Why Do We Think GETY Will Underperform?
- Muted 1.3% annual revenue growth over the last two years shows its demand lagged behind its business services peers
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 3.9 percentage points
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 12.1 percentage points
Getty Images is trading at $1.94 per share, or 2.7x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why GETY doesn’t pass our bar.
Great Lakes Dredge & Dock (GLDD)
Rolling One-Year Beta: 1.46
Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ: GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.
Why Does GLDD Fall Short?
- Sales trends were unexciting over the last five years as its 2.9% annual growth was below the typical industrials company
- Sales are projected to tank by 1.3% over the next 12 months as demand evaporates
- Cash burn makes us question whether it can achieve sustainable long-term growth
Great Lakes Dredge & Dock’s stock price of $11.61 implies a valuation ratio of 14.6x forward P/E. If you’re considering GLDD for your portfolio, see our FREE research report to learn more.
QuidelOrtho (QDEL)
Rolling One-Year Beta: 1.15
Born from the 2022 merger of Quidel and Ortho Clinical Diagnostics, QuidelOrtho (NASDAQ: QDEL) develops and manufactures diagnostic testing solutions for healthcare providers, from rapid point-of-care tests to complex laboratory instruments and systems.
Why Is QDEL Risky?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- 21 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $25.82 per share, QuidelOrtho trades at 9.2x forward P/E. To fully understand why you should be careful with QDEL, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
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