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. Keeping that in mind, here are three volatile stocks best left to the gamblers and some better opportunities instead.
Starbucks (SBUX)
Rolling One-Year Beta: 1.38
Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.
Why Does SBUX Worry Us?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 5.1 percentage points
- Earnings per share fell by 2.2% annually over the last six years while its revenue grew, showing its incremental sales were much less profitable
At $86.68 per share, Starbucks trades at 32x forward P/E. If you’re considering SBUX for your portfolio, see our FREE research report to learn more.
Genco (GNK)
Rolling One-Year Beta: 1.12
Headquartered in NYC, Genco (NYSE: GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes.
Why Are We Wary of GNK?
- Number of owned vessels has disappointed over the past two years, indicating weak demand for its offerings
- Earnings per share have dipped by 61.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- 26.4 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
Genco is trading at $17.30 per share, or 18.2x forward P/E. Read our free research report to see why you should think twice about including GNK in your portfolio.
Corebridge Financial (CRBG)
Rolling One-Year Beta: 1.34
Spun off from insurance giant AIG in 2022 to focus on the growing retirement market, Corebridge Financial (NYSE: CRBG) provides retirement solutions, annuities, life insurance, and institutional risk management products in the United States.
Why Are We Cautious About CRBG?
- Net premiums earned contracted by 2.9% annually over the last four years, showing unfavorable market dynamics this cycle
- Pre-tax profit margin declined by 15.6 percentage points over the last two years as its sales cratered
- High debt-to-equity ratio of 1.2× shows the firm carries too much debt relative to shareholder equity, increasing bankruptcy risk
Corebridge Financial’s stock price of $32.54 implies a valuation ratio of 1.3x forward P/B. Dive into our free research report to see why there are better opportunities than CRBG.
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 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-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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