Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.
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 steer clear of and a few better alternatives.
Vishay Intertechnology (VSH)
Rolling One-Year Beta: 2.80
Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE:VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.
Why Should You Sell VSH?
- Annual revenue growth of 3% over the last two years was below our standards for the semiconductor sector
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 28.9% annually while its revenue grew
- Long-term business health is up for debate as its cash burn has increased over the last five years
At $31.71 per share, Vishay Intertechnology trades at 23.5x forward P/E. To fully understand why you should be careful with VSH, check out our full research report (it’s free).
Bark (BARK)
Rolling One-Year Beta: 2.47
Making a name for itself with the BarkBox, Bark (NYSE:BARK) specializes in subscription-based, personalized pet products.
Why Do We Think BARK Will Underperform?
- Products and services aren’t resonating with the market as its revenue declined by 2.5% annually over the last five years
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Bark is trading at $8.10 per share, or 8.9x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BARK doesn’t pass our bar.
Ally Financial (ALLY)
Rolling One-Year Beta: 1.20
Born from the former GMAC (General Motors Acceptance Corporation) and rebranded in 2010, Ally Financial (NYSE:ALLY) operates a digital-first bank offering auto financing, insurance, mortgage lending, and investment services to consumers and commercial clients.
Why Are We Bearish on ALLY?
- Sales trends were unexciting over the last five years as its 2.8% annual growth was below the typical financials company
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 8.9% annually
Ally Financial’s stock price of $38.90 implies a valuation ratio of 6.5x forward P/E. Read our free research report to see why you should think twice about including ALLY in your portfolio.
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.