3 Volatile Stocks We Find Risky

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.

Macy's (M)

Rolling One-Year Beta: 1.07

With a storied history that began with its 1858 founding, Macy’s (NYSE:M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Why Should You Sell M?

1. Store closures and disappointing same-store sales suggest demand is sluggish and it’s rightsizing its operations
2. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
3. Forecasted revenue decline of 4% for the upcoming 12 months implies demand will fall even further

Macy's is trading at $19.39 per share, or 10x forward P/E. Check out our free in-depth research report to learn more about why M doesn’t pass our bar.

Matrix Service (MTRX)

Rolling One-Year Beta: 2.01

Founded in Oklahoma, Matrix Service (NASDAQ:MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.

Why Do We Pass on MTRX?

1. Annual sales declines of 6.9% for the past five years show its products and services struggled to connect with the market during this cycle
2. Gross margin of 3.9% reflects its high production costs
3. Issuance of new shares over the last five years caused its earnings per share to fall by 34.8% annually, even worse than its revenue declines

Matrix Service’s stock price of $14.15 implies a valuation ratio of 31.9x forward P/E. Dive into our free research report to see why there are better opportunities than MTRX.

PROG (PRG)

Rolling One-Year Beta: 1.21

Evolving from its origins as Aaron's, Inc. before rebranding in 2020, PROG Holdings (NYSE:PRG) provides alternative payment solutions including lease-to-own options and second-look credit products for consumers who may not qualify for traditional financing.

Why Do We Avoid PRG?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. Sales over the last five years were less profitable as its earnings per share fell by 6.2% annually while its revenue was flat
3. Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 12.9% annually over the last five years

At $31.24 per share, PROG trades at 9.3x forward P/E. Read our free research report to see why you should think twice about including PRG in your portfolio.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-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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