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. Keeping that in mind, here are three volatile stocks to avoid and some better opportunities instead.
TD SYNNEX (SNX)
Rolling One-Year Beta: 1.22
Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE:SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.
Why Are We Hesitant About SNX?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 1.3% for the last two years
- Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
TD SYNNEX’s stock price of $150.65 implies a valuation ratio of 10.6x forward P/E. If you’re considering SNX for your portfolio, see our FREE research report to learn more.
Banner Bank (BANR)
Rolling One-Year Beta: 1.07
Founded in 1890 in Walla Walla, Washington, and evolving through more than a century of economic cycles, Banner Corporation (NASDAQ:BANR) operates Banner Bank, providing commercial banking services, loans, and financial products to individuals and businesses across Washington, Oregon, California, Idaho, and Utah.
Why Is BANR Not Exciting?
- Muted 3.7% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Earnings per share fell by 6.1% annually over the last two years while its revenue was flat, showing each sale was less profitable
- Estimated tangible book value per share growth of 9.6% for the next 12 months implies profitability will slow from its two-year trend
At $66.55 per share, Banner Bank trades at 1.2x forward P/B. Check out our free in-depth research report to learn more about why BANR doesn’t pass our bar.
Wells Fargo (WFC)
Rolling One-Year Beta: 1.36
Founded during the California Gold Rush in 1852 to provide banking and express delivery services to miners and merchants, Wells Fargo (NYSE:WFC) is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals and businesses.
Why Do We Avoid WFC?
- Annual net interest income growth of 2.4% over the last five years lagged behind its banking peers as its large revenue base made it difficult to generate incremental demand
- Net interest margin dropped by 45.3 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market
- Estimated tangible book value per share growth of 4.6% for the next 12 months implies profitability will slow from its two-year trend
Wells Fargo is trading at $91.91 per share, or 1.8x forward P/B. To fully understand why you should be careful with WFC, check out our full research report (it’s free for active Edge members).
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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 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.