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. That said, here are three volatile stocks best left to the gamblers and some better opportunities instead.
Bath and Body Works (BBWI)
Rolling One-Year Beta: 1.09
Spun off from L Brands in 2020, Bath & Body Works (NYSE: BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.
Why Does BBWI Fall Short?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Estimated sales growth of 2.1% for the next 12 months implies demand will slow from its six-year trend
- Earnings growth underperformed the sector average over the last six years as its EPS grew by just 8.6% annually
At $29.13 per share, Bath and Body Works trades at 7.9x forward P/E. Dive into our free research report to see why there are better opportunities than BBWI.
Proto Labs (PRLB)
Rolling One-Year Beta: 1.40
Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs (NYSE: PRLB) offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries.
Why Do We Think PRLB Will Underperform?
- 2.4% annual revenue growth over the last two years was slower than its industrials peers
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 7.6 percentage points
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
Proto Labs is trading at $48.15 per share, or 32.5x forward P/E. If you’re considering PRLB for your portfolio, see our FREE research report to learn more.
Enovis (ENOV)
Rolling One-Year Beta: 1.37
With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE: ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation.
Why Are We Out on ENOV?
- Annual sales declines of 7.1% for the past five years show its products and services struggled to connect with the market during this cycle
- Negative returns on capital show that some of its growth strategies have backfired, and its falling returns suggest its earlier profit pools are drying up
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Enovis’s stock price of $30 implies a valuation ratio of 9.5x forward P/E. Read our free research report to see why you should think twice about including ENOV in your portfolio.
Stocks We Like More
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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