3 Volatile Stocks with Questionable Fundamentals

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.

Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here are three volatile stocks to avoid and some better opportunities instead.

Skillz (SKLZ)

Rolling One-Year Beta: 2.36

Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.

Why Do We Steer Clear of SKLZ?

1. Intense competition is diverting traffic from its platform as its paying monthly active users fell by 15% annually
2. Persistent EBITDA margin losses suggest the business manages its expenses poorly
3. Cash burn makes us question whether it can achieve sustainable long-term growth

Skillz’s stock price of $4.38 implies a valuation ratio of 0.7x forward price-to-gross profit. Check out our free in-depth research report to learn more about why SKLZ doesn’t pass our bar.

Boot Barn (BOOT)

Rolling One-Year Beta: 1.61

With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE:BOOT) is a western-inspired apparel and footwear retailer.

Why Do We Think Twice About BOOT?

1. Muted 9.3% annual revenue growth over the last three years shows its demand lagged behind its consumer retail peers
2. Smaller revenue base of $2.07 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Widely-available products (and therefore stiff competition) result in an inferior gross margin of 37.5% that must be offset through higher volumes

Boot Barn is trading at $194.19 per share, or 25.8x forward P/E. Read our free research report to see why you should think twice about including BOOT in your portfolio.

Redwire (RDW)

Rolling One-Year Beta: 2.41

Based in Jacksonville, Florida, Redwire (NYSE:RDW) is a provider of systems and components used in space infrastructure.

Why Do We Think RDW Will Underperform?

1. Historically negative EPS raises concerns for risk-averse investors and makes its earnings potential harder to gauge
2. 14.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $11.11 per share, Redwire trades at 86.2x forward EV-to-EBITDA. If you’re considering RDW for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.