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.
Analog Devices (ADI)
Rolling One-Year Beta: 1.52
Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ: ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.
Why Does ADI Worry Us?
- Annual sales declines of 5.4% for the past two years show its products and services struggled to connect with the market during this cycle
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Analog Devices’s stock price of $317.89 implies a valuation ratio of 31.8x forward P/E. To fully understand why you should be careful with ADI, check out our full research report (it’s free).
Lincoln Financial Group (LNC)
Rolling One-Year Beta: 1.15
Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE: LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.
Why Do We Steer Clear of LNC?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Net premiums earned remained stagnant over the last five years, indicating expansion challenges this cycle
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 14.9% annually over the last five years
Lincoln Financial Group is trading at $41.35 per share, or 0.8x forward P/B. If you’re considering LNC for your portfolio, see our FREE research report to learn more.
Encore Capital Group (ECPG)
Rolling One-Year Beta: 1.06
Operating in the often misunderstood world of debt collection since 1999, Encore Capital Group (NASDAQ: ECPG) purchases portfolios of defaulted consumer debt at deep discounts and works with individuals to recover these obligations while helping them toward financial recovery.
Why Is ECPG Not Exciting?
- 1.3% annual revenue growth over the last five years was slower than its financials peers
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 15.9% annually
- High net-debt-to-EBITDA ratio of 11× could force the company to raise capital at unfavorable terms if market conditions deteriorate
At $55.53 per share, Encore Capital Group trades at 7.3x forward P/E. Check out our free in-depth research report to learn more about why ECPG doesn’t pass our bar.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
