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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here are three volatile stocks to steer clear of and a few better alternatives.
Owens Corning (OC)
Rolling One-Year Beta: 1.38
Credited with the discovery of fiberglass, Owens Corning (NYSE:OC) supplies building and construction materials to the United States and international markets.
Why Do We Think OC Will Underperform?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 13.6 percentage points
- Diminishing returns on capital suggest its earlier profit pools are drying up
Owens Corning’s stock price of $135.22 implies a valuation ratio of 14.2x forward P/E. Read our free research report to see why you should think twice about including OC in your portfolio.
Sealed Air (SEE)
Rolling One-Year Beta: 1.29
Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.
Why Should You Sell SEE?
- Flat unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Diminishing returns on capital suggest its earlier profit pools are drying up
Sealed Air is trading at $41.95 per share, or 12.9x forward P/E. To fully understand why you should be careful with SEE, check out our full research report (it’s free).
Enovis (ENOV)
Rolling One-Year Beta: 1.58
With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE:ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation.
Why Should You Dump ENOV?
- Sales tumbled by 6.5% annually over the last five years, showing market trends are working against its favor during this cycle
- Earnings per share have contracted by 5.7% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $21.91 per share, Enovis trades at 7x forward P/E. If you’re considering ENOV for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
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 Growth Stocks for this month. 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.