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.
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 avoid and some better opportunities instead.
Elastic (ESTC)
Rolling One-Year Beta: 1.51
Built on the powerful open-source Elasticsearch technology that powers search functionality for thousands of websites worldwide, Elastic (NYSE: ESTC) provides a search and AI platform that helps organizations find insights from their data, monitor applications, and protect against security threats.
Why Are We Hesitant About ESTC?
- Offerings struggled to generate meaningful interest as its average billings growth of 13.9% over the last year did not impress
- Estimated sales growth of 13.6% for the next 12 months implies demand will slow from its two-year trend
- Operating margin improvement of 5.9 percentage points over the last year demonstrates its ability to scale efficiently
Elastic’s stock price of $61.27 implies a valuation ratio of 3.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ESTC.
Dillard's (DDS)
Rolling One-Year Beta: 1.42
With stores located largely in the Southern and Western US, Dillard’s (NYSE: DDS) is a department store chain that sells clothing, cosmetics, accessories, and home goods.
Why Is DDS Not Exciting?
- Dearth of new stores suggests management is prioritizing the optimization of its existing locations over growth
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Earnings per share have dipped by 9.5% annually over the past three years, which is concerning because stock prices follow EPS over the long term
At $651.51 per share, Dillard's trades at 23.2x forward P/E. If you’re considering DDS for your portfolio, see our FREE research report to learn more.
Albany (AIN)
Rolling One-Year Beta: 1.38
Founded in 1895, Albany (NYSE: AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.
Why Are We Out on AIN?
- 2.5% annual revenue growth over the last two years was slower than its industrials peers
- 9.9 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
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Albany is trading at $59.28 per share, or 21.1x forward P/E. Check out our free in-depth research report to learn more about why AIN doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
