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. Keeping that in mind, here are three volatile stocks to steer clear of and a few better alternatives.

Starbucks (SBUX)

Rolling One-Year Beta: 1.29

Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.

Why Are We Cautious About SBUX?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
2. Estimated sales growth of 4.4% for the next 12 months implies demand will slow from its six-year trend
3. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 3.6 percentage points

Starbucks is trading at $95.20 per share, or 30.1x forward P/E. If you’re considering SBUX for your portfolio, see our FREE research report to learn more.

Astec (ASTE)

Rolling One-Year Beta: 1.37

Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ: ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.

Why Are We Out on ASTE?

1. Backlog has dropped by 28.1% on average over the past two years, suggesting it’s losing orders as competition picks up
2. Anticipated sales growth of 3.5% for the next year implies demand will be shaky
3. 8.1 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

At $41.13 per share, Astec trades at 14.6x forward P/E. Dive into our free research report to see why there are better opportunities than ASTE.

Lincoln Financial Group (LNC)

Rolling One-Year Beta: 1.19

Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE: LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.

Why Should You Sell LNC?

1. Net premiums earned stagnated over the last four years and signal the need for new growth strategies
2. Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 13.2% annually over the last five years
3. Low return on equity reflects management’s struggle to allocate funds effectively

Lincoln Financial Group’s stock price of $34.28 implies a valuation ratio of 0.7x forward P/B. If you’re considering LNC for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 183% over the last five years (as of March 31st 2025).

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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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