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 to avoid and some better opportunities instead.
Gray Television (GTN)
Rolling One-Year Beta: 1.37
Specializing in local media coverage, Gray Television (NYSE: GTN) is a broadcast company supplying digital media to various markets in the United States.
Why Do We Pass on GTN?
- Muted 4.8% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
- Returns on capital haven’t budged, indicating management couldn’t drive additional value creation
- High net-debt-to-EBITDA ratio of 8× could force the company to raise capital on unfavorable terms if market conditions deteriorate
Gray Television’s stock price of $4.50 implies a valuation ratio of 6.1x forward EV-to-EBITDA. To fully understand why you should be careful with GTN, check out our full research report (it’s free).
Hyster-Yale Materials Handling (HY)
Rolling One-Year Beta: 1.34
Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE: HY) designs, manufactures, and sells materials handling equipment to various sectors.
Why Is HY Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.1% annually over the last two years
- Earnings per share fell by 41.4% annually over the last five years while its revenue grew, partly because it diluted shareholders
- Negative earnings profile makes it challenging to secure favorable financing terms from lenders
At $29.32 per share, Hyster-Yale Materials Handling trades at 111.5x forward P/E. If you’re considering HY for your portfolio, see our FREE research report to learn more.
Invesco (IVZ)
Rolling One-Year Beta: 1.34
With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE: IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.
Why Does IVZ Give Us Pause?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Earnings per share fell by 1.5% annually over the last five years while its revenue was flat, showing each sale was less profitable
Invesco is trading at $28.20 per share, or 9.6x forward P/E. Dive into our free research report to see why there are better opportunities than IVZ.
Stocks We Like More
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
