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.

FormFactor (FORM)

Rolling One-Year Beta: 2.18

With customers across the foundry and fabless markets, FormFactor (NASDAQ: FORM) is a US-based provider of test and measurement technologies for semiconductors.

Why Should You Dump FORM?

1. Muted 4.4% annual revenue growth over the last five years shows its demand lagged behind its semiconductor peers
2. Projected sales growth of 2.4% for the next 12 months suggests sluggish demand
3. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 6.1 percentage points

FormFactor’s stock price of $32.35 implies a valuation ratio of 21.9x forward P/E. If you’re considering FORM for your portfolio, see our FREE research report to learn more.

Udemy (UDMY)

Rolling One-Year Beta: 1.38

With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ: UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics.

Why Does UDMY Worry Us?

1. Customer spending has dipped by 1.6% on average as it focused on growing its buyers
2. Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
3. Excessive marketing spend signals little organic demand and traction for its platform

Udemy is trading at $7.43 per share, or 11.5x forward EV/EBITDA. Read our free research report to see why you should think twice about including UDMY in your portfolio.

Nordson (NDSN)

Rolling One-Year Beta: 1.08

Founded in 1954, Nordson Corporation (NASDAQ: NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings.

Why Does NDSN Give Us Pause?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Earnings per share have contracted by 1.9% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Free cash flow margin dropped by 5.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $202.60 per share, Nordson trades at 19.7x forward P/E. To fully understand why you should be careful with NDSN, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.