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.
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 steer clear of and a few better alternatives.
Belden (BDC)
Rolling One-Year Beta: 1.44
With its enamel-coated copper wire used in WWI for the Allied forces, Belden (NYSE: BDC) designs, manufactures, and sells electronic components to various industries.
Why Are We Wary of BDC?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Anticipated sales growth of 5% for the next year implies demand will be shaky
- Earnings per share were flat over the last two years and fell short of the peer group average
At $129.70 per share, Belden trades at 17.4x forward P/E. To fully understand why you should be careful with BDC, check out our full research report (it’s free).
Hexcel (HXL)
Rolling One-Year Beta: 1.13
Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE: HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors.
Why Should You Sell HXL?
- Sales tumbled by 1.8% annually over the last five years, showing market trends are working against its favor during this cycle
- Earnings per share have dipped by 5.6% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Free cash flow margin shrank by 8.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Hexcel is trading at $62 per share, or 27.8x forward P/E. Dive into our free research report to see why there are better opportunities than HXL.
P10 (PX)
Rolling One-Year Beta: 1.57
Operating as a bridge between institutional investors and hard-to-access private market opportunities, P10 (NYSE: PX) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.
Why Is PX Not Exciting?
- Underwhelming 6% return on equity reflects management’s difficulties in finding profitable growth opportunities
P10’s stock price of $11.87 implies a valuation ratio of 12.5x forward P/E. Check out our free in-depth research report to learn more about why PX doesn’t pass our bar.
Stocks We Like More
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.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 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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