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. That said, here are three volatile stocks to steer clear of and a few better alternatives.
UiPath (PATH)
Rolling One-Year Beta: 1.38
Starting with robotic process automation (RPA) and evolving into a comprehensive automation powerhouse, UiPath (NYSE: PATH) provides an AI-powered business automation platform that enables organizations to create software robots that mimic human actions to streamline repetitive tasks and processes.
Why Are We Cautious About PATH?
- Customers had second thoughts about committing to its platform over the last year as its billings plateaued
- Estimated sales growth of 9.6% for the next 12 months implies demand will slow from its two-year trend
- Poor expense management has led to operating margin losses
UiPath’s stock price of $14.20 implies a valuation ratio of 4.8x forward price-to-sales. If you’re considering PATH for your portfolio, see our FREE research report to learn more.
Soho House (SHCO)
Rolling One-Year Beta: 1.26
Boasting fancy locations in hubs such as NYC and Miami, Soho House (NYSE: SHCO) is a global hospitality brand offering exclusive private member clubs, hotels, and restaurants.
Why Does SHCO Fall Short?
- Performance surrounding its members has lagged its peers
- Negative free cash flow raises questions about the return timeline for its investments
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $8.87 per share, Soho House trades at 14.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including SHCO in your portfolio.
Atkore (ATKR)
Rolling One-Year Beta: 1.20
Protecting the things that power our world, Atkore (NYSE: ATKR) designs and manufactures electrical safety products.
Why Should You Dump ATKR?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- 5.8 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
- Diminishing returns on capital suggest its earlier profit pools are drying up
Atkore is trading at $65.33 per share, or 12.4x forward P/E. To fully understand why you should be careful with ATKR, check out our full research report (it’s free for active Edge members).
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 (+1,545% 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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