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3 Volatile Stocks Walking a Fine Line

MNRO Cover Image

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 to avoid and some better opportunities instead.

Monro (MNRO)

Rolling One-Year Beta: 1.35

Started as a single location in Rochester, New York, Monro (NASDAQ: MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.

Why Do We Pass on MNRO?

  1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
  2. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 6 percentage points
  3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging

Monro is trading at $18.07 per share, or 25.6x forward P/E. Read our free research report to see why you should think twice about including MNRO in your portfolio.

MYR Group (MYRG)

Rolling One-Year Beta: 1.95

Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ: MYRG) is a specialty contractor in the electrical construction industry.

Why Should You Dump MYRG?

  1. Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 2.4% declines over the past two years
  2. Earnings per share fell by 4.6% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
  3. Eroding returns on capital suggest its historical profit centers are aging

At $179.70 per share, MYR Group trades at 24.8x forward P/E. Dive into our free research report to see why there are better opportunities than MYRG.

Fulton Financial (FULT)

Rolling One-Year Beta: 1.30

Tracing its roots back to 1882 in the heart of Pennsylvania, Fulton Financial (NASDAQ: FULT) is a financial holding company that provides banking, lending, and wealth management services to consumers and businesses across five Mid-Atlantic states.

Why Does FULT Give Us Pause?

  1. Estimated net interest income growth of 1.9% for the next 12 months implies demand will slow from its five-year trend
  2. Efficiency ratio is expected to worsen by 2.8 percentage points over the next year
  3. Annual tangible book value per share growth of 4.3% over the last five years was below our standards for the banking sector

Fulton Financial’s stock price of $19.38 implies a valuation ratio of 1.1x forward P/B. If you’re considering FULT for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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).

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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