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3 Volatile Stocks We’re Skeptical Of

RUN Cover Image

Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.

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.

Sunrun (RUN)

Rolling One-Year Beta: 1.66

Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ: RUN) provides residential solar electricity, specializing in panel installation and leasing services.

Why Are We Cautious About RUN?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
  2. Cash-burning history makes us doubt the long-term viability of its business model
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Sunrun’s stock price of $19.99 implies a valuation ratio of 43.2x forward EV-to-EBITDA. If you’re considering RUN for your portfolio, see our FREE research report to learn more.

HP (HPQ)

Rolling One-Year Beta: 1.42

Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.

Why Should You Dump HPQ?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
  2. Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
  3. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 2.8% annually

At $19.67 per share, HP trades at 6.4x forward P/E. Dive into our free research report to see why there are better opportunities than HPQ.

Affiliated Managers Group (AMG)

Rolling One-Year Beta: 1.09

Using a partnership approach that preserves entrepreneurial culture at its portfolio companies, Affiliated Managers Group (NYSE: AMG) is an investment firm that acquires stakes in boutique asset management companies while allowing them to maintain operational independence.

Why Do We Think Twice About AMG?

  1. Annual sales declines of 1.3% for the past two years show its products and services struggled to connect with the market during this cycle
  2. Earnings per share lagged its peers over the last two years as they only grew by 7.8% annually

Affiliated Managers Group is trading at $305.34 per share, or 10.3x forward P/E. Check out our free in-depth research report to learn more about why AMG doesn’t pass our bar.

Stocks We Like More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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