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 best left to the gamblers and some better opportunities instead.
IPG Photonics (IPGP)
Rolling One-Year Beta: 1.49
Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.
Why Are We Out on IPGP?
- Sales tumbled by 3.8% annually over the last five years, showing market trends are working against its favor during this cycle
- Operating profits fell over the last five years as its sales dropped and it struggled to adjust its fixed costs
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
IPG Photonics’s stock price of $88 implies a valuation ratio of 61.6x forward P/E. If you’re considering IPGP for your portfolio, see our FREE research report to learn more.
Kirby (KEX)
Rolling One-Year Beta: 1.48
Transporting goods along all U.S. coasts, Kirby (NYSE:KEX) provides inland and coastal marine transportation services.
Why Are We Wary of KEX?
- Sales trends were unexciting over the last two years as its 4.7% annual growth was below the typical industrials company
- Free cash flow margin shrank by 4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Underwhelming 3.6% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $106.25 per share, Kirby trades at 15.6x forward P/E. Dive into our free research report to see why there are better opportunities than KEX.
Navient (NAVI)
Rolling One-Year Beta: 1.15
Spun off from Sallie Mae in 2014 to handle the company's loan servicing and collection operations, Navient (NASDAQ:NAVI) provides education loan servicing and business processing solutions that help manage federal student loans, private education loans, and government services.
Why Should You Sell NAVI?
- Annual sales declines of 18.7% for the past five years show its products and services struggled to connect with the market during this cycle
- Earnings per share have contracted by 17.1% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- Elevated debt-to-equity ratio of 18.6× suggests the firm is overleveraged and may struggle to secure additional financing
Navient is trading at $11.89 per share, or 11.1x forward P/E. Check out our free in-depth research report to learn more about why NAVI doesn’t pass our bar.
Stocks We Like More
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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