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.

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 best left to the gamblers and some better opportunities instead.

IPG Photonics (IPGP)

Rolling One-Year Beta: 1.45

Both a designer and manufacturer of its products, IPG Photonics (NASDAQ: IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.

Why Should You Dump IPGP?

1. Sales tumbled by 3.5% annually over the last five years, showing market trends are working against its favor during this cycle
2. Sales were less profitable over the last five years as its earnings per share fell by 17.2% annually, worse than its revenue declines
3. 18.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $154.48 per share, IPG Photonics trades at 84.8x forward P/E. If you’re considering IPGP for your portfolio, see our FREE research report to learn more.

CAVA (CAVA)

Rolling One-Year Beta: 1.64

Starting from a single Washington, D.C. location, CAVA (NYSE: CAVA) operates a fast-casual restaurant chain offering customizable Mediterranean-inspired dishes.

Why Does CAVA Worry Us?

1. Subpar operating margin of 4.6% constrains its ability to invest in process improvements or effectively respond to new competitive threats
2. Earnings per share have contracted by 15.6% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Negative returns on capital show that some of its growth strategies have backfired

CAVA’s stock price of $63.40 implies a valuation ratio of 115.3x forward P/E. To fully understand why you should be careful with CAVA, check out our full research report (it’s free).

HP (HPQ)

Rolling One-Year Beta: 1.42

Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.

Why Do We Steer Clear of HPQ?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
3. Earnings per share fell by 2.8% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable

HP is trading at $19.26 per share, or 6.3x forward P/E. Dive into our free research report to see why there are better opportunities than HPQ.

High-Quality Stocks for All Market Conditions

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 9 Market-Beating Stocks. 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.