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.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. Keeping that in mind, here are three volatile stocks to steer clear of and a few better alternatives.
Freshpet (FRPT)
Rolling One-Year Beta: 0.87
Standing out from typical processed pet foods, Freshpet (NASDAQ:FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.
Why Does FRPT Give Us Pause?
- Smaller revenue base of $1.08 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Negative returns on capital show management lost money while trying to expand the business
At $50.72 per share, Freshpet trades at 36.3x forward P/E. If you’re considering FRPT for your portfolio, see our FREE research report to learn more.
VF Corp (VFC)
Rolling One-Year Beta: 2.08
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 Steer Clear of VFC?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
VF Corp’s stock price of $14.62 implies a valuation ratio of 17.8x forward P/E. Check out our free in-depth research report to learn more about why VFC doesn’t pass our bar.
Robert Half (RHI)
Rolling One-Year Beta: 1.06
With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE:RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.
Why Do We Pass on RHI?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 9.4% annually over the last two years
- Sales over the last five years were less profitable as its earnings per share fell by 11.6% annually while its revenue was flat
- Diminishing returns on capital suggest its earlier profit pools are drying up
Robert Half is trading at $25.87 per share, or 17x forward P/E. Dive into our free research report to see why there are better opportunities than RHI.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 Tecnoglass (+1,754% 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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