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. That said, here are three volatile stocks to steer clear of and a few better alternatives.
MGP Ingredients (MGPI)
Rolling One-Year Beta: 1.20
Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ: MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry
Why Is MGPI Risky?
- Sales tumbled by 8.6% annually over the last three years, showing consumer trends are working against its favor
- Sales are projected to tank by 12% over the next 12 months as its demand continues evaporating
- Inability to adjust its cost structure while its revenue declined over the last year led to a 18.3 percentage point drop in the company’s operating margin
MGP Ingredients is trading at $24.49 per share, or 10.1x forward P/E. Read our free research report to see why you should think twice about including MGPI in your portfolio.
American Express Global Business Travel (GBTG)
Rolling One-Year Beta: 1.40
Originally spun off from American Express in 2014 but maintaining the Amex GBT brand, Global Business Travel Group (NYSE: GBTG) provides end-to-end business travel and expense management solutions, connecting corporate clients with travel suppliers and offering specialized software services.
Why Should You Sell GBTG?
- Muted 5.3% annual revenue growth over the last two years shows its demand lagged behind its software peers
- High servicing costs result in a relatively inferior gross margin of 61% that must be offset through increased usage
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
American Express Global Business Travel’s stock price of $7.66 implies a valuation ratio of 1.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than GBTG.
Carrier Global (CARR)
Rolling One-Year Beta: 1.19
Founded by the inventor of air conditioning, Carrier Global (NYSE: CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.
Why Do We Avoid CARR?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Estimated sales growth of 1.5% for the next 12 months implies demand will slow from its two-year trend
- Eroding returns on capital suggest its historical profit centers are aging
At $53.02 per share, Carrier Global trades at 19.2x forward P/E. Check out our free in-depth research report to learn more about why CARR doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.
