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. That said, here are three volatile stocks to avoid and some better opportunities instead.

Shake Shack (SHAK)

Rolling One-Year Beta: 1.49

Started as a hot dog cart in New York City's Madison Square Park, Shake Shack (NYSE: SHAK) is a fast-food restaurant known for its burgers and milkshakes.

Why Are We Cautious About SHAK?

1. Poor expense management has led to an operating margin of 1.8% that is below the industry average
2. Earnings per share lagged its peers over the last six years as they only grew by 8.9% annually
3. Low returns on capital reflect management’s struggle to allocate funds effectively

Shake Shack’s stock price of $90.56 implies a valuation ratio of 68.5x forward P/E. Check out our free in-depth research report to learn more about why SHAK doesn’t pass our bar.

Inspired (INSE)

Rolling One-Year Beta: 1.54

Specializing in digital casino gaming, Inspired (NASDAQ: INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.

Why Are We Out on INSE?

1. Annual revenue growth of 9.6% over the last five years was below our standards for the consumer discretionary sector
2. Operating margin of 9.6% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
3. Low free cash flow margin of 2.9% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

At $9.06 per share, Inspired trades at 15x forward P/E. Read our free research report to see why you should think twice about including INSE in your portfolio.

Atlantic Union Bankshares (AUB)

Rolling One-Year Beta: 1.20

Tracing its roots back to 1902 when it first opened its doors in Virginia, Atlantic Union Bankshares (NYSE: AUB) is a full-service regional bank providing commercial and retail banking, wealth management, and insurance services throughout Virginia and parts of Maryland and North Carolina.

Why Does AUB Give Us Pause?

1. Performance over the past two years shows its incremental sales were less profitable, as its 6.2% annual earnings per share growth trailed its revenue gains
2. Products and services are facing profitability challenges during this cycle, as seen in its flat tangible book value per share over the last five years
3. Insufficient tier one capital ratio of 9.9% leaves little margin for error in meeting regulatory liquidity requirements

Atlantic Union Bankshares is trading at $38.97 per share, or 1.1x forward P/B. If you’re considering AUB for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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.