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.
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 best left to the gamblers and some better opportunities instead.
AerSale (ASLE)
Rolling One-Year Beta: 1.25
Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ: ASLE) delivers full-service support to mid-life commercial aircraft.
Why Do We Pass on ASLE?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Cash-burning history makes us doubt the long-term viability of its business model
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
AerSale is trading at $7.20 per share, or 11.6x forward P/E. If you’re considering ASLE for your portfolio, see our FREE research report to learn more.
10x Genomics (TXG)
Rolling One-Year Beta: 1.82
Founded in 2012 by scientists seeking to overcome limitations in traditional biological research methods, 10x Genomics (NASDAQ: TXG) develops instruments, consumables, and software that enable researchers to analyze biological systems at single-cell resolution and spatial context.
Why Do We Steer Clear of TXG?
- Sales trends were unexciting over the last two years as its 1.9% annual growth was below the typical healthcare company
- Modest revenue base of $642.8 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Negative returns on capital show that some of its growth strategies have backfired
At $18.46 per share, 10x Genomics trades at 3.6x forward price-to-sales. Check out our free in-depth research report to learn more about why TXG doesn’t pass our bar.
Wells Fargo (WFC)
Rolling One-Year Beta: 1.34
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 Think Twice About WFC?
- The company has faced growth challenges as its 3.5% annual net interest income increases over the last five years fell short of other banking companies
- Net interest margin shrank by 46.7 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
- Projected tangible book value per share growth of 6.5% for the next 12 months suggests sluggish capital generation
Wells Fargo’s stock price of $86.97 implies a valuation ratio of 1.5x forward P/B. Read our free research report to see why you should think twice about including WFC in your portfolio.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
