3 Volatile Stocks We Find Risky
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.
MillerKnoll (MLKN)
Rolling One-Year Beta: 1.44
Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ:MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide.
Why Do We Avoid MLKN?
- Annual sales declines of 2.1% for the past two years show its products and services struggled to connect with the market during this cycle
- Projected sales growth of 1.2% for the next 12 months suggests sluggish demand
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 7.2% annually while its revenue grew
At $15.75 per share, MillerKnoll trades at 8.3x forward P/E. Check out our free in-depth research report to learn more about why MLKN doesn’t pass our bar.
Zebra (ZBRA)
Rolling One-Year Beta: 1.55
Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ:ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.
Why Does ZBRA Fall Short?
- Annual revenue growth of 1.7% over the last two years was below our standards for the business services sector
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- 7 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
Zebra’s stock price of $264.64 implies a valuation ratio of 15.3x forward P/E. To fully understand why you should be careful with ZBRA, check out our full research report (it’s free for active Edge members).
First Citizens BancShares (FCNCA)
Rolling One-Year Beta: 1.21
With roots dating back to 1898 and a significant expansion through its 2023 acquisition of Silicon Valley Bank, First Citizens BancShares (NASDAQGS:FCNC.A) is a bank holding company that provides financial services to individuals and businesses through its First-Citizens Bank & Trust Company subsidiary.
Why Does FCNCA Give Us Pause?
- Annual revenue growth of 6.9% over the last two years was below our standards for the banking sector
- Demand is forecasted to shrink as its estimated net interest income for the next 12 months is flat
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 60.3 basis points (100 basis points = 1 percentage point)
First Citizens BancShares is trading at $1,974 per share, or 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than FCNCA.
Stocks We Like More
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 Growth Stocks for this month. 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 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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