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. Keeping that in mind, here are three volatile stocks to avoid and some better opportunities instead.
ZoomInfo (GTM)
Rolling One-Year Beta: 1.96
Operating a platform it calls "RevOS" - short for Revenue Operating System - ZoomInfo (NASDAQ: GTM) provides sales, marketing, and recruiting teams with business intelligence and analytics to identify prospects and deliver targeted outreach.
Why Do We Think GTM Will Underperform?
- Offerings struggled to generate meaningful interest as its average billings growth of 1% over the last year did not impress
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Operating margin increased by 5.1 percentage points over the last year as it refined its cost structure
At $10.26 per share, ZoomInfo trades at 2.6x forward price-to-sales. Read our free research report to see why you should think twice about including GTM in your portfolio.
Kirby (KEX)
Rolling One-Year Beta: 1.34
Transporting goods along all U.S. coasts, Kirby (NYSE: KEX) provides inland and coastal marine transportation services.
Why Is KEX Not Exciting?
- 4.7% annual revenue growth over the last two years was slower than its industrials peers
- Free cash flow margin dropped by 4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Low returns on capital reflect management’s struggle to allocate funds effectively
Kirby’s stock price of $118.45 implies a valuation ratio of 17.3x forward P/E. If you’re considering KEX for your portfolio, see our FREE research report to learn more.
Orion (ORN)
Rolling One-Year Beta: 2.34
Established in 1994, Orion (NYSE: ORN) provides construction services for marine infrastructure and industrial projects.
Why Should You Sell ORN?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 1.7% declines over the past two years
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 3.8% annually
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.7% for the last five years
Orion is trading at $10.20 per share, or 40.8x forward P/E. Dive into our free research report to see why there are better opportunities than ORN.
Stocks We Like More
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
