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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here are three volatile stocks to avoid and some better opportunities instead.
Park-Ohio (PKOH)
Rolling One-Year Beta: 1.48
Based in Cleveland, Park-Ohio (NASDAQ: PKOH) provides supply chain management services, capital equipment, and manufactured components.
Why Should You Dump PKOH?
- Sales tumbled by 1.8% annually over the last two years, showing market trends are working against its favor during this cycle
- Gross margin of 15.5% reflects its high production costs
- Cash-burning history makes us doubt the long-term viability of its business model
At $23 per share, Park-Ohio trades at 6.9x forward P/E. Check out our free in-depth research report to learn more about why PKOH doesn’t pass our bar.
Sunrun (RUN)
Rolling One-Year Beta: 1.66
Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ: RUN) provides residential solar electricity, specializing in panel installation and leasing services.
Why Does RUN Fall Short?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Sunrun is trading at $18.34 per share, or 29.3x forward P/E. Read our free research report to see why you should think twice about including RUN in your portfolio.
Xerox (XRX)
Rolling One-Year Beta: 2.32
Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ: XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe.
Why Do We Avoid XRX?
- Annual sales declines of 2.6% for the past five years show its products and services struggled to connect with the market during this cycle
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- 8× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Xerox’s stock price of $2.62 implies a valuation ratio of 3.1x forward P/E. To fully understand why you should be careful with XRX, check out our full research report (it’s free for active Edge members).
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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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