3 Volatile Stocks in the Doghouse

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.

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 best left to the gamblers and some better opportunities instead.

Okta (OKTA)

Rolling One-Year Beta: 1.13

Founded during the aftermath of the financial crisis in 2009, Okta (NASDAQ:OKTA) is a cloud-based software-as-a-service platform that helps companies manage identity for their employees and customers.

Why Does OKTA Worry Us?

1. Products, pricing, or go-to-market strategy may need some adjustments as its 9.9% average billings growth over the last year was weak
2. Estimated sales growth of 9.1% for the next 12 months implies demand will slow from its three-year trend
3. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 1.4 percentage points over the next year

Okta’s stock price of $98.22 implies a valuation ratio of 6.1x forward price-to-sales. If you’re considering OKTA for your portfolio, see our FREE research report to learn more.

MDU Resources (MDU)

Rolling One-Year Beta: 1.13

Founded to provide electricity to towns in Minnesota, MDU Resources (NYSE:MDU) provides products and services in the utilities and construction materials industries.

Why Do We Avoid MDU?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 25.9% annually over the last five years
2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
3. High net-debt-to-EBITDA ratio of 5× increases the risk of forced asset sales or dilutive financing if operational performance weakens

MDU Resources is trading at $16.13 per share, or 15.5x forward P/E. To fully understand why you should be careful with MDU, check out our full research report (it’s free).

UMB Financial (UMBF)

Rolling One-Year Beta: 1.18

With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ:UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.

Why Are We Wary of UMBF?

1. Net interest margin of 2.5% reflects its high servicing and capital costs
2. 4% annual tangible book value per share growth over the last two years was slower than its bank peers
3. Annual interest expenses are high relative to its profits, increasing the probability of its failure to meet certain borrowing obligations

At $102.59 per share, UMB Financial trades at 1.1x forward P/B. Read our free research report to see why you should think twice about including UMBF in your portfolio.

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 6 Stocks for this week. 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 Kadant (+351% 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