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3 Volatile Stocks We Steer Clear Of

CWH 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.

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.

Camping World (CWH)

Rolling One-Year Beta: 2.19

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE: CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Why Do We Pass on CWH?

  1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  2. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 58.4% annually, worse than its revenue
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $14.68 per share, Camping World trades at 19.6x forward P/E. To fully understand why you should be careful with CWH, check out our full research report (it’s free).

Allient (ALNT)

Rolling One-Year Beta: 1.67

Founded in 1962, Allient (NASDAQ: ALNT) develops and manufactures precision and specialty-controlled motion components and systems.

Why Are We Cautious About ALNT?

  1. Sales tumbled by 3.2% annually over the last two years, showing market trends are working against its favor during this cycle
  2. Performance over the past two years was negatively impacted by new share issuances as its earnings per share dropped by 5.7% annually, worse than its revenue
  3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam

Allient’s stock price of $63.78 implies a valuation ratio of 25.8x forward P/E. Dive into our free research report to see why there are better opportunities than ALNT.

RadNet (RDNT)

Rolling One-Year Beta: 1.06

With over 350 imaging facilities across seven states and a growing artificial intelligence division, RadNet (NASDAQ: RDNT) operates a network of outpatient diagnostic imaging centers across the United States, offering services like MRI, CT scans, PET scans, mammography, and X-rays.

Why Are We Wary of RDNT?

  1. Modest revenue base of $1.97 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
  2. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 3.5 percentage points
  3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.3% for the last five years

RadNet is trading at $72.92 per share, or 108.4x forward P/E. If you’re considering RDNT for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

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