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3 Volatile Stocks We Steer Clear Of

CWK Cover Image

Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.

At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here are three volatile stocks to avoid and some better opportunities instead.

Cushman & Wakefield (CWK)

Rolling One-Year Beta: 1.47

With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE: CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.

Why Should You Dump CWK?

  1. Sales were flat over the last two years, indicating it’s failed to expand its business
  2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 4.3% annually while its revenue grew
  3. Poor free cash flow margin of 1.9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

At $16.68 per share, Cushman & Wakefield trades at 13.9x forward P/E. Read our free research report to see why you should think twice about including CWK in your portfolio.

NN (NNBR)

Rolling One-Year Beta: 2.79

Formerly known as Nuturn, NN (NASDAQ: NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.

Why Should You Sell NNBR?

  1. Annual sales declines of 6.6% for the past two years show its products and services struggled to connect with the market during this cycle
  2. Cash-burning history makes us doubt the long-term viability of its business model
  3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

NN is trading at $2.48 per share, or 71.1x forward P/E. Dive into our free research report to see why there are better opportunities than NNBR.

Dime Community Bancshares (DCOM)

Rolling One-Year Beta: 1.06

With roots dating back to 1910 and a name that evokes the historic "dime savings banks" of America's past, Dime Community Bancshares (NASDAQ: DCOM) is a New York-based bank holding company that provides commercial banking and financial services to businesses and consumers throughout Greater Long Island.

Why Are We Hesitant About DCOM?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 5.5% annually over the last two years
  2. Net interest margin of 2.6% is well below other banks, signaling its loans aren’t very profitable
  3. Sales were less profitable over the last two years as its earnings per share fell by 26.7% annually, worse than its revenue declines

Dime Community Bancshares’s stock price of $30.63 implies a valuation ratio of 1x forward P/B. If you’re considering DCOM for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

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 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-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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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