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. Keeping that in mind, here are three volatile stocks to avoid and some better opportunities instead.
Appian (APPN)
Rolling One-Year Beta: 1.25
Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ: APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge.
Why Are We Wary of APPN?
- Sales trends were unexciting over the last two years as its 13.9% annual growth was below the typical software company
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $30.71 per share, Appian trades at 3.1x forward price-to-sales. If you’re considering APPN for your portfolio, see our FREE research report to learn more.
Movado (MOV)
Rolling One-Year Beta: 1.06
With its watches displayed in 20 museums around the world, Movado (NYSE: MOV) is a watchmaking company with a portfolio of watch brands and accessories.
Why Should You Sell MOV?
- Products and services aren't resonating with the market as its revenue declined by 4.3% annually over the last two years
- Estimated sales growth of 1.2% for the next 12 months is soft and implies weaker demand
- Waning returns on capital imply its previous profit engines are losing steam
Movado is trading at $18.90 per share, or 0.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MOV.
Viatris (VTRS)
Rolling One-Year Beta: 1.11
Created through the 2020 merger of Mylan and Pfizer's Upjohn division, Viatris (NASDAQ: VTRS) is a healthcare company that develops, manufactures, and distributes branded and generic medicines across more than 165 countries worldwide.
Why Are We Out on VTRS?
- Sales tumbled by 4.9% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share fell by 12% annually over the last five years while its revenue grew, partly because it diluted shareholders
- Negative returns on capital show that some of its growth strategies have backfired, and its falling returns suggest its earlier profit pools are drying up
Viatris’s stock price of $10.33 implies a valuation ratio of 4.4x forward P/E. To fully understand why you should be careful with VTRS, check out our full research report (it’s free for active Edge members).
Stocks We Like More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 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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