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.
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 best left to the gamblers and some better opportunities instead.
FormFactor (FORM)
Rolling One-Year Beta: 1.98
With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors.
Why Do We Steer Clear of FORM?
- Annual revenue growth of 2.4% over the last five years was below our standards for the semiconductor sector
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 5.5% annually while its revenue grew
- Lacking free cash flow margin got worse over the last five years as its investment needs accelerated
FormFactor’s stock price of $67.13 implies a valuation ratio of 44.6x forward P/E. To fully understand why you should be careful with FORM, check out our full research report (it’s free).
Voya Financial (VOYA)
Rolling One-Year Beta: 1.24
Originally spun off from Dutch financial giant ING in 2013 and rebranded with a name suggesting "voyage," Voya Financial (NYSE:VOYA) provides workplace benefits and savings solutions to U.S. employers, helping their employees achieve better financial outcomes through retirement plans and insurance products.
Why Are We Wary of VOYA?
- Sales trends were unexciting over the last two years as its 6.8% annual growth was below the typical financials company
- Performance over the past two years shows its incremental sales were less profitable, as its 4.1% annual earnings per share growth trailed its revenue gains
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 14.6% annually over the last five years
At $78.75 per share, Voya Financial trades at 8.3x forward P/E. Check out our free in-depth research report to learn more about why VOYA doesn’t pass our bar.
Morgan Stanley (MS)
Rolling One-Year Beta: 1.60
Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley (NYSE:MS) is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.
Why Are We Cautious About MS?
- Large asset base makes it harder to grow tangible book value per share quickly, and its annual tangible book value per share growth of 1.7% over the last five years was below our standards for the financials sector
Morgan Stanley is trading at $186.62 per share, or 17.5x forward P/E. Read our free research report to see why you should think twice about including MS in your portfolio.
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 Strong Momentum 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.