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. That said, here are three volatile stocks to steer clear of and a few better alternatives.

Warner Bros. Discovery (WBD)

Rolling One-Year Beta: 1.40

Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ: WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.

Why Are We Out on WBD?

1. Annual revenue declines of 4.9% over the last two years indicate problems with its market positioning
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 38.3% annually while its revenue grew
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Warner Bros. Discovery’s stock price of $12.88 implies a valuation ratio of 234x forward P/E. Read our free research report to see why you should think twice about including WBD in your portfolio.

Keysight (KEYS)

Rolling One-Year Beta: 1.63

Spun off from Hewlett-Packard in 2014, Keysight (NYSE: KEYS) offers electronic measurement products for use in various sectors.

Why Do We Pass on KEYS?

1. Backlog has dropped by 3.3% on average over the past two years, suggesting it’s losing orders as competition picks up
2. Earnings per share have dipped by 9.8% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $158.20 per share, Keysight trades at 21.8x forward P/E. Check out our free in-depth research report to learn more about why KEYS doesn’t pass our bar.

Belden (BDC)

Rolling One-Year Beta: 1.38

With its enamel-coated copper wire used in WWI for the Allied forces, Belden (NYSE: BDC) designs, manufactures, and sells electronic components to various industries.

Why Does BDC Fall Short?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Anticipated sales growth of 4.7% for the next year implies demand will be shaky
3. Flat earnings per share over the last two years lagged its peers

Belden is trading at $117.63 per share, or 15.7x forward P/E. If you’re considering BDC for your portfolio, see our FREE research report to learn more.

Stocks We Like More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.

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