3 Volatile Stocks with Warning Signs
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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here are three volatile stocks best left to the gamblers and some better opportunities instead.
Salesforce (CRM)
Rolling One-Year Beta: 1.27
With its cloud-based platform named after its stock ticker symbol CRM (Customer Relationship Management), Salesforce (NYSE:CRM) provides customer relationship management software that helps businesses connect with their customers across sales, service, marketing, and commerce.
Why Do We Think Twice About CRM?
- Underwhelming ARR growth of 9.1% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
- Anticipated sales growth of 11.9% for the next year implies demand will be shaky
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
At $260.85 per share, Salesforce trades at 5.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than CRM.
CBRE (CBRE)
Rolling One-Year Beta: 1.05
Established in 1906, CBRE (NYSE:CBRE) is one of the largest commercial real estate services firms in the world.
Why Do We Pass on CBRE?
- Sizable revenue base leads to growth challenges as its 10.3% annual revenue increases over the last five years fell short of other consumer discretionary companies
- Poor free cash flow margin of 3.1% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
CBRE’s stock price of $160.89 implies a valuation ratio of 23x forward P/E. Read our free research report to see why you should think twice about including CBRE in your portfolio.
United Rentals (URI)
Rolling One-Year Beta: 1.41
Owning the largest rental fleet in the world, United Rentals (NYSE:URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.
Why Are We Cautious About URI?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.1% annually
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.6 percentage points
United Rentals is trading at $798.35 per share, or 17.7x forward P/E. Dive into our free research report to see why there are better opportunities than URI.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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-micro-cap company Kadant (+351% 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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