3 Volatile Stocks Walking a Fine Line

August 11, 2025 at 00:34 AM EDT

HUBG Cover Image

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.

At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here are three volatile stocks best left to the gamblers and some better opportunities instead.

Hub Group (HUBG)

Rolling One-Year Beta: 1.17

Started with $10,000, Hub Group (NASDAQ: HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.

Why Should You Sell HUBG?

Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
Diminishing returns on capital suggest its earlier profit pools are drying up

At $34.58 per share, Hub Group trades at 16.3x forward P/E. Dive into our free research report to see why there are better opportunities than HUBG.

GE HealthCare (GEHC)

Rolling One-Year Beta: 1.25

Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ: GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.

Why Does GEHC Give Us Pause?

Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
Incremental sales over the last four years were much less profitable as its earnings per share fell by 3.7% annually while its revenue grew
Free cash flow margin shrank by 9.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

GE HealthCare’s stock price of $72.19 implies a valuation ratio of 17.5x forward P/E. Check out our free in-depth research report to learn more about why GEHC doesn’t pass our bar.

Texas Capital Bank (TCBI)

Rolling One-Year Beta: 1.06

Founded during the Texas banking renaissance of the 1990s with an entrepreneurial spirit, Texas Capital Bancshares (NASDAQ: TCBI) is a financial services firm that provides banking, wealth management, and investment banking services to businesses and individuals across Texas and beyond.

Why Are We Wary of TCBI?

2.2% annual net interest income growth over the last five years was slower than its bank peers
Net interest margin of 3.1% reflects its high servicing and capital costs
Earnings per share fell by 11.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

Texas Capital Bank is trading at $80.17 per share, or 1.1x forward P/B. To fully understand why you should be careful with TCBI, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

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3 Volatile Stocks Walking a Fine Line

Hub Group (HUBG)

GE HealthCare (GEHC)

Texas Capital Bank (TCBI)

High-Quality Stocks for All Market Conditions

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