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. That said, here are three volatile stocks best left to the gamblers and some better opportunities instead.
Jack in the Box (JACK)
Rolling One-Year Beta: 1.21
Delighting customers since its inception in 1951, Jack in the Box (NASDAQ: JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.
Why Do We Avoid JACK?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 6.5 percentage points
- 11× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $21.68 per share, Jack in the Box trades at 5.5x forward P/E. Read our free research report to see why you should think twice about including JACK in your portfolio.
VF Corp (VFC)
Rolling One-Year Beta: 2.25
Owner of The North Face, Vans, and Supreme, VF Corp (NYSE: VFC) is a clothing conglomerate specializing in branded lifestyle apparel, footwear, and accessories.
Why Do We Think VFC Will Underperform?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate
VF Corp is trading at $19.75 per share, or 24.8x forward P/E. If you’re considering VFC for your portfolio, see our FREE research report to learn more.
Donnelley Financial Solutions (DFIN)
Rolling One-Year Beta: 1.45
Born from the need to navigate increasingly complex financial regulations in the digital age, Donnelley Financial Solutions (NYSE: DFIN) provides software and technology-enabled services that help companies comply with SEC regulations and manage financial transactions and reporting requirements.
Why Does DFIN Give Us Pause?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 3% annually over the last five years
Donnelley Financial Solutions’s stock price of $54.87 implies a valuation ratio of 12.9x forward P/E. Dive into our free research report to see why there are better opportunities than DFIN.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
