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. Keeping that in mind, here are three volatile stocks best left to the gamblers and some better opportunities instead.

Benchmark (BHE)

Rolling One-Year Beta: 1.47

Operating as a critical behind-the-scenes partner for complex technology products since 1979, Benchmark Electronics (NYSE: BHE) provides advanced manufacturing, engineering, and technology solutions for original equipment manufacturers across aerospace, medical, industrial, and technology sectors.

Why Are We Cautious About BHE?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 6.3% annually over the last two years
2. Poor free cash flow margin of 0.8% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

At $38.58 per share, Benchmark trades at 15.4x forward P/E. Read our free research report to see why you should think twice about including BHE in your portfolio.

Arrow Electronics (ARW)

Rolling One-Year Beta: 1.07

Founded as a single retail store, Arrow Electronics (NYSE: ARW) provides electronic components and enterprise computing solutions to businesses globally.

Why Is ARW Risky?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.8% annually over the last two years
2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Arrow Electronics is trading at $120.99 per share, or 4.8x forward EV-to-EBITDA. To fully understand why you should be careful with ARW, check out our full research report (it’s free).

F.N.B. Corporation (FNB)

Rolling One-Year Beta: 1.29

Tracing its roots back to 1864 during the Civil War era, F.N.B. Corporation (NYSE: FNB) is a diversified financial services holding company that provides banking, wealth management, and insurance services to consumers and businesses across seven states and Washington, D.C.

Why Does FNB Give Us Pause?

1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
2. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 27.3 basis points (100 basis points = 1 percentage point)
3. Earnings per share fell by 7% annually over the last two years while its revenue was flat, showing each sale was less profitable

F.N.B. Corporation’s stock price of $14.95 implies a valuation ratio of 0.8x forward P/B. Dive into our free research report to see why there are better opportunities than FNB.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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