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 steer clear of and a few better alternatives.
PlayStudios (MYPS)
Rolling One-Year Beta: 1.12
Founded by a team of former gaming industry executives, PlayStudios (NASDAQ: MYPS) offers free-to-play digital casino games.
Why Does MYPS Worry Us?
- Products and services have few die-hard fans as sales have declined by 4.4% annually over the last two years
- Poor expense management has led to operating margin losses
- Negative returns on capital show management lost money while trying to expand the business
PlayStudios is trading at $1.25 per share, or 3x forward EV-to-EBITDA. If you’re considering MYPS for your portfolio, see our FREE research report to learn more.
APi (APG)
Rolling One-Year Beta: 1.14
Started in 1926 as an insulation contractor, APi (NYSE: APG) provides life safety solutions and specialty services for buildings and infrastructure.
Why Does APG Fall Short?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Free cash flow margin shrank by 3.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- ROIC of 3% reflects management’s challenges in identifying attractive investment opportunities
APi’s stock price of $34.95 implies a valuation ratio of 25x forward P/E. To fully understand why you should be careful with APG, check out our full research report (it’s free).
Jackson Financial (JXN)
Rolling One-Year Beta: 1.44
Spun off from British insurer Prudential plc in 2021 after more than 60 years as its U.S. subsidiary, Jackson Financial (NYSE: JXN) offers annuity products and retirement solutions that help Americans grow and protect their retirement savings and income.
Why Is JXN Not Exciting?
- 3.2% annual net premiums earned growth over the last two years was slower than its insurance peers
- Costs have risen faster than its revenue over the last two years, causing its pre-tax profit margin to decline by 48.2 percentage points
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
At $88.18 per share, Jackson Financial trades at 0.6x forward P/B. Check out our free in-depth research report to learn more about why JXN doesn’t pass our bar.
Stocks We Like More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
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