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 best left to the gamblers and some better opportunities instead.
JFrog (FROG)
Rolling One-Year Beta: 1.07
Named after the amphibian that continuously evolves from egg to tadpole to adult, JFrog (NASDAQ: FROG) provides a platform that helps organizations securely create, store, manage, and distribute software packages across any system.
Why Does FROG Give Us Pause?
- Historical operating margin losses show it had an inefficient cost structure while scaling
- Projected 8.9 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
JFrog is trading at $49.41 per share, or 10.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than FROG.
Microchip Technology (MCHP)
Rolling One-Year Beta: 1.89
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Why Do We Think MCHP Will Underperform?
- Sales tumbled by 4.2% annually over the last five years, showing market trends are working against its favor during this cycle
- Operating margin declined by 17.6 percentage points over the last five years as its sales cratered
- 15.8 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
Microchip Technology’s stock price of $65.38 implies a valuation ratio of 37.6x forward P/E. To fully understand why you should be careful with MCHP, check out our full research report (it’s free).
T. Rowe Price (TROW)
Rolling One-Year Beta: 1.13
Founded in 1937 by Thomas Rowe Price Jr., who pioneered the growth stock investing approach, T. Rowe Price (NASDAQ: TROW) is an investment management firm that offers mutual funds, advisory services, and retirement planning solutions to individuals and institutions.
Why Does TROW Worry Us?
- Muted 4.3% annual revenue growth over the last five years shows its demand lagged behind its financials peers
- Annual earnings per share growth of 2.8% underperformed its revenue over the last five years, showing its incremental sales were less profitable
At $107.01 per share, T. Rowe Price trades at 13.2x forward P/E. Read our free research report to see why you should think twice about including TROW in your portfolio.
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 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
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