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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here are three volatile stocks best left to the gamblers and some better opportunities instead.
Workday (WDAY)
Rolling One-Year Beta: 1.05
Born from the vision of PeopleSoft founders after Oracle's hostile takeover of their previous company, Workday (NASDAQ: WDAY) provides cloud-based software for financial management, human resources, planning, and analytics to help organizations manage their business operations.
Why Do We Think Twice About WDAY?
- Annual revenue growth of 16.4% over the last three years was below our standards for the software sector
Workday is trading at $221.60 per share, or 5.9x forward price-to-sales. Check out our free in-depth research report to learn more about why WDAY doesn’t pass our bar.
WillScot Mobile Mini (WSC)
Rolling One-Year Beta: 1.95
Originally focusing on mobile offices for construction sites, WillScot (NASDAQ: WSC) provides ready-to-use temporary spaces, largely for longer-term lease.
Why Are We Wary of WSC?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Earnings per share have contracted by 10.1% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Free cash flow margin shrank by 6.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
WillScot Mobile Mini’s stock price of $24.92 implies a valuation ratio of 14.4x forward P/E. If you’re considering WSC for your portfolio, see our FREE research report to learn more.
Vontier (VNT)
Rolling One-Year Beta: 1.21
A spin-off of a spin-off, Vontier (NYSE: VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors.
Why Do We Avoid VNT?
- 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
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $43.71 per share, Vontier trades at 13.4x forward P/E. Check out our free in-depth research report to learn more about why VNT doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound 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).
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