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 to steer clear of and a few better alternatives.
Himax (HIMX)
Rolling One-Year Beta: 2.13
Taiwan-based Himax Technologies (NASDAQ:HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones.
Why Should You Sell HIMX?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 6% annually over the last two years
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 22.9 percentage points
Himax’s stock price of $9.48 implies a valuation ratio of 60.5x forward P/E. Dive into our free research report to see why there are better opportunities than HIMX.
Victoria's Secret (VSCO)
Rolling One-Year Beta: 2.38
Spun off from L Brands in 2020, Victoria’s Secret (NYSE:VSCO) is an intimate clothing and beauty retailer that sells its own brands of lingerie, undergarments, and personal fragrances.
Why Is VSCO Risky?
- Flat sales over the last three years suggest it must innovate and find new ways to grow
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Earnings per share have contracted by 19.1% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
At $50.93 per share, Victoria's Secret trades at 18.2x forward P/E. If you’re considering VSCO for your portfolio, see our FREE research report to learn more.
Insperity (NSP)
Rolling One-Year Beta: 1.12
Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE:NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.
Why Do We Avoid NSP?
- Annual revenue growth of 2.8% over the last two years was below our standards for the business services sector
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 18.7% annually while its revenue grew
- 4.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Insperity is trading at $35.45 per share, or 18.4x forward P/E. Dive into our free research report to see why there are better opportunities than NSP.
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-small-cap company Comfort Systems (+782% 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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