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 avoid and some better opportunities instead.

Elastic (ESTC)

Rolling One-Year Beta: 1.51

Built on the powerful open-source Elasticsearch technology that powers search functionality for thousands of websites worldwide, Elastic (NYSE: ESTC) provides a search and AI platform that helps organizations find insights from their data, monitor applications, and protect against security threats.

Why Are We Hesitant About ESTC?

1. Offerings struggled to generate meaningful interest as its average billings growth of 13.9% over the last year did not impress
2. Estimated sales growth of 13.6% for the next 12 months implies demand will slow from its two-year trend
3. Operating margin improvement of 5.9 percentage points over the last year demonstrates its ability to scale efficiently

Elastic’s stock price of $61.27 implies a valuation ratio of 3.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ESTC.

Dillard's (DDS)

Rolling One-Year Beta: 1.42

With stores located largely in the Southern and Western US, Dillard’s (NYSE: DDS) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Why Is DDS Not Exciting?

1. Dearth of new stores suggests management is prioritizing the optimization of its existing locations over growth
2. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
3. Earnings per share have dipped by 9.5% annually over the past three years, which is concerning because stock prices follow EPS over the long term

At $651.51 per share, Dillard's trades at 23.2x forward P/E. If you’re considering DDS for your portfolio, see our FREE research report to learn more.

Albany (AIN)

Rolling One-Year Beta: 1.38

Founded in 1895, Albany (NYSE: AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.

Why Are We Out on AIN?

1. 2.5% annual revenue growth over the last two years was slower than its industrials peers
2. 9.9 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
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Albany is trading at $59.28 per share, or 21.1x forward P/E. Check out our free in-depth research report to learn more about why AIN doesn’t pass our bar.

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 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.