3 Volatile Stocks with Mounting Challenges
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.
Rolling One-Year Beta: 1.84
Founded by a researcher at the Massachusetts Institute of Technology, Vicor (NASDAQ:VICR) provides electrical power conversion and delivery products for a range of industries.
Why Is VICR Not Exciting?
Customers postponed purchases of its products and services this cycle as its revenue declined by 5% annually over the last two years
Performance over the past two years was negatively impacted by new share issuances as its earnings per share dropped by 12.9% annually, worse than its revenue
Eroding returns on capital suggest its historical profit centers are aging
Vicor's stock price of $43.91 implies a valuation ratio of 27.4x forward P/E. Read our free research report to see why you should think twice about including VICR in your portfolio, it's free.
Rolling One-Year Beta: 0.91
Pioneering the ability to read the human genome at unprecedented speed and affordability, Illumina (NASDAQ:ILMN) develops and sells advanced DNA sequencing and microarray technologies that allow researchers and clinicians to analyze genetic variations and functions.
Why Are We Out on ILMN?
Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
Earnings per share fell by 8.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Underwhelming 1.2% return on capital reflects management's difficulties in finding profitable growth opportunities
At $81.56 per share, Illumina trades at 17.7x forward P/E. Check out our free in-depth research report to learn more about why ILMN doesn't pass our bar.
Rolling One-Year Beta: 1.53
Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology (NYSE:PAR) provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs.
Why Do We Think Twice About PAR?
Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 6.3 percentage points
Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
PAR Technology is trading at $66.29 per share, or 251.2x forward P/E. Dive into our free research report to see why there are better opportunities than PAR.
The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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.
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