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.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here are three volatile stocks to avoid and some better opportunities instead.
Sabre (SABR)
Rolling One-Year Beta: 2.36
Originally a division of American Airlines, Sabre (NASDAQ:SABR) is a technology provider for the global travel and tourism industry.
Why Should You Sell SABR?
- Performance surrounding its central reservation system transactions has lagged its peers
- Cash-burning history makes us doubt the long-term viability of its business model
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Sabre’s stock price of $1.51 implies a valuation ratio of 12x forward P/E. Read our free research report to see why you should think twice about including SABR in your portfolio.
Regal Rexnord (RRX)
Rolling One-Year Beta: 1.42
Headquartered in Milwaukee, Regal Rexnord (NYSE:RRX) provides power transmission and industrial automation products.
Why Are We Hesitant About RRX?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Flat earnings per share over the last two years underperformed the sector average
- Underwhelming 5% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
Regal Rexnord is trading at $148.86 per share, or 13.7x forward P/E. To fully understand why you should be careful with RRX, check out our full research report (it’s free for active Edge members).
BankUnited (BKU)
Rolling One-Year Beta: 1.27
Born from the ashes of a failed Florida thrift during the 2009 financial crisis, BankUnited (NYSE:BKU) is a regional bank that provides commercial lending, deposit services, and treasury solutions to businesses and consumers primarily in Florida and the New York metropolitan area.
Why Is BKU Risky?
- Annual net interest income growth of 5.4% over the last five years was below our standards for the banking sector
- Overall productivity is expected to decrease over the next year as Wall Street thinks its efficiency ratio will degrade by 18.1 percentage points
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 4.4% annually
At $44.90 per share, BankUnited trades at 1.1x forward P/B. If you’re considering BKU for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
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 Exlservice (+354% 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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