3 Volatile Stocks Walking a Fine Line

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.

These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here are three volatile stocks to avoid and some better opportunities instead.

America's Car-Mart (CRMT)

Rolling One-Year Beta: 1.07

With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ:CRMT) sells used cars to budget-conscious consumers.

Why Do We Pass on CRMT?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Earnings per share have dipped by 29.1% annually over the past five years, which is concerning because stock prices follow EPS over the long term
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

America's Car-Mart is trading at $61.18 per share, or 15.8x forward P/E. Dive into our free research report to see why there are better opportunities than CRMT.

VSE Corporation (VSEC)

Rolling One-Year Beta: 1.38

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ:VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

Why Does VSEC Fall Short?

1. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 12.3%
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Low returns on capital reflect management’s struggle to allocate funds effectively

VSE Corporation’s stock price of $127.76 implies a valuation ratio of 34.8x forward P/E. Read our free research report to see why you should think twice about including VSEC in your portfolio.

Fulton Financial (FULT)

Rolling One-Year Beta: 1.20

Tracing its roots back to 1882 in the heart of Pennsylvania, Fulton Financial (NASDAQ:FULT) is a financial holding company that provides banking, lending, and wealth management services to consumers and businesses across five Mid-Atlantic states.

Why Does FULT Give Us Pause?

1. Estimated net interest income growth of 3.1% for the next 12 months implies demand will slow from its four-year trend
2. Capital trends were unexciting over the last five years as its 4.4% annual tangible book value per share growth was below the typical bank company
3. Estimated tangible book value per share growth of 7.3% for the next 12 months implies profitability will slow from its two-year trend

At $19.41 per share, Fulton Financial trades at 1.1x forward P/B. If you’re considering FULT for your portfolio, see our FREE research report to learn more.

Stocks We Like More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

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-small-cap company Comfort Systems (+782% 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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