3 Volatile Stocks in the Doghouse

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.

OneWater (ONEW)

Rolling One-Year Beta: 1.60

A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products.

Why Is ONEW Not Exciting?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. Earnings per share have dipped by 54.5% annually over the past four years, which is concerning because stock prices follow EPS over the long term
3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

OneWater’s stock price of $12.88 implies a valuation ratio of 7.2x forward P/E. Dive into our free research report to see why there are better opportunities than ONEW.

Ralph Lauren (RL)

Rolling One-Year Beta: 1.16

Originally founded as a necktie company, Ralph Lauren (NYSE:RL) is an iconic American fashion brand known for its classic and sophisticated style.

Why Does RL Worry Us?

1. Annual revenue growth of 2.8% over the last five years was below our standards for the consumer discretionary sector
2. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
3. Estimated sales growth of 4.7% for the next 12 months is soft and implies weaker demand

Ralph Lauren is trading at $274.87 per share, or 20.4x forward P/E. Check out our free in-depth research report to learn more about why RL doesn’t pass our bar.

Avis Budget Group (CAR)

Rolling One-Year Beta: 1.07

The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ:CAR) is a provider of car rental and mobility solutions.

Why Should You Dump CAR?

1. Sluggish trends in its available rental days - car rental suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Eroding returns on capital suggest its historical profit centers are aging
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $176.05 per share, Avis Budget Group trades at 5.5x forward EV-to-EBITDA. To fully understand why you should be careful with CAR, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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