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.

These stocks can be a rollercoaster, and StockStory is here to guide you through the ups and downs. Keeping that in mind, here are three volatile stocks to avoid and some better opportunities instead.

Magnachip (MX)

Rolling One-Year Beta: 1.98

With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE: MX) is a provider of analog and mixed-signal semiconductors.

Why Should You Dump MX?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 16.3% annually over the last five years
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 11.1 percentage points
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Magnachip’s stock price of $2.78 implies a valuation ratio of 0.5x forward price-to-sales. If you’re considering MX for your portfolio, see our FREE research report to learn more.

Johnson Controls (JCI)

Rolling One-Year Beta: 1.30

Founded after patenting the electric room thermostat, Johnson Controls (NYSE: JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.

Why Should You Sell JCI?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5% annually
3. ROIC of 7.3% reflects management’s challenges in identifying attractive investment opportunities, and its decreasing returns suggest its historical profit centers are aging

At $105.33 per share, Johnson Controls trades at 25.3x forward P/E. Check out our free in-depth research report to learn more about why JCI doesn’t pass our bar.

Dell (DELL)

Rolling One-Year Beta: 2.25

Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE: DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.

Why Are We Wary of DELL?

1. Sales stagnated over the last two years and signal the need for new growth strategies
2. Underwhelming ARR growth of 5% suggests the company faced challenges in acquiring and retaining long-term customers
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 9.9 percentage points

Dell is trading at $128.86 per share, or 13.3x forward P/E. Dive into our free research report to see why there are better opportunities than DELL.

Stocks We Like More

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 5 Growth Stocks for this month. 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

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