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.

Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here are three volatile stocks to steer clear of and a few better alternatives.

Salesforce (CRM)

Rolling One-Year Beta: 1.36

Launched in 1999 from a rented one-bedroom apartment in San Francisco by Marc Benioff and his three co-founders, Salesforce (NYSE: CRM) is a software-as-a-service platform that helps companies access, manage, and share sales information such as leads.

Why Does CRM Give Us Pause?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 12.7% for the last three years
2. Products, pricing, or go-to-market strategy may need some adjustments as its 8.1% average billings growth over the last year was weak
3. Estimated sales growth of 7.6% for the next 12 months implies demand will slow from its three-year trend

At $287.21 per share, Salesforce trades at 7x forward price-to-sales. To fully understand why you should be careful with CRM, check out our full research report (it’s free).

10x Genomics (TXG)

Rolling One-Year Beta: 1.17

Founded in 2012 by scientists seeking to overcome limitations in traditional biological research methods, 10x Genomics (NASDAQ: TXG) develops instruments, consumables, and software that enable researchers to analyze biological systems at single-cell resolution and spatial context.

Why Is TXG Risky?

1. Cash-burning history makes us doubt the long-term viability of its business model
2. Push for growth has led to negative returns on capital, signaling value destruction, and its decreasing returns suggest its historical profit centers are aging
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

10x Genomics is trading at $9.04 per share, or 2x forward price-to-sales. Check out our free in-depth research report to learn more about why TXG doesn’t pass our bar.

Diebold Nixdorf (DBD)

Rolling One-Year Beta: 1.12

With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE: DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.

Why Are We Cautious About DBD?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.9% annually over the last five years
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Push for growth has led to negative returns on capital, signaling value destruction

Diebold Nixdorf’s stock price of $49.39 implies a valuation ratio of 12.5x forward P/E. Dive into our free research report to see why there are better opportunities than DBD.

Stocks We Like More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.