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.
These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. That said, here are three volatile stocks to avoid and some better opportunities instead.
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 Are We Cautious About RUN?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Cash-burning history makes us doubt the long-term viability of its business model
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Sunrun’s stock price of $19.99 implies a valuation ratio of 43.2x forward EV-to-EBITDA. If you’re considering RUN for your portfolio, see our FREE research report to learn more.
HP (HPQ)
Rolling One-Year Beta: 1.42
Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE:HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.
Why Should You Dump HPQ?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 2.8% annually
At $19.67 per share, HP trades at 6.4x forward P/E. Dive into our free research report to see why there are better opportunities than HPQ.
Affiliated Managers Group (AMG)
Rolling One-Year Beta: 1.09
Using a partnership approach that preserves entrepreneurial culture at its portfolio companies, Affiliated Managers Group (NYSE:AMG) is an investment firm that acquires stakes in boutique asset management companies while allowing them to maintain operational independence.
Why Do We Think Twice About AMG?
- Annual sales declines of 1.3% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share lagged its peers over the last two years as they only grew by 7.8% annually
Affiliated Managers Group is trading at $305.34 per share, or 10.3x forward P/E. Check out our free in-depth research report to learn more about why AMG doesn’t pass our bar.
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 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.