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. Keeping that in mind, here are three volatile stocks to avoid and some better opportunities instead.
Carrier Global (CARR)
Rolling One-Year Beta: 1.31
Founded by the inventor of air conditioning, Carrier Global (NYSE:CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.
Why Does CARR Worry Us?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Free cash flow margin shrank by 5.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Carrier Global is trading at $62.49 per share, or 19x forward P/E. To fully understand why you should be careful with CARR, check out our full research report (it’s free).
BrightSpring Health Services (BTSG)
Rolling One-Year Beta: 1.21
Founded in 1974, BrightSpring Health Services (NASDAQ:BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.
Why Are We Wary of BTSG?
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 2.4 percentage points
- Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
- Free cash flow margin dropped by 5.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
BrightSpring Health Services’s stock price of $28.49 implies a valuation ratio of 28.6x forward P/E. If you’re considering BTSG for your portfolio, see our FREE research report to learn more.
Banner Bank (BANR)
Rolling One-Year Beta: 1.07
Founded in 1890 in Walla Walla, Washington, and evolving through more than a century of economic cycles, Banner Corporation (NASDAQ:BANR) operates Banner Bank, providing commercial banking services, loans, and financial products to individuals and businesses across Washington, Oregon, California, Idaho, and Utah.
Why Does BANR Give Us Pause?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Net interest income trends were unexciting over the last five years as its 3.6% annual growth was below the typical banking firm
- Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 7.9% annually
At $66.50 per share, Banner Bank trades at 1.2x forward P/B. Read our free research report to see why you should think twice about including BANR in your portfolio.
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.
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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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