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.
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 steer clear of and a few better alternatives.
DocuSign (DOCU)
Rolling One-Year Beta: 1.11
Creating the digital equivalent of "sign on the dotted line" for over a billion users worldwide, DocuSign (NASDAQ: DOCU) provides an agreement management platform that enables businesses to electronically prepare, sign, and manage documents and contracts.
Why Are We Hesitant About DOCU?
- Underwhelming ARR growth of 8.4% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
- Anticipated sales growth of 6.7% for the next year implies demand will be shaky
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
DocuSign’s stock price of $56.84 implies a valuation ratio of 3.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than DOCU.
Upland Software (UPLD)
Rolling One-Year Beta: 1.52
Operating under the mantra "land and expand," Upland Software (NASDAQ: UPLD) provides cloud-based applications that help organizations manage projects, workflows, and digital transformation across various business functions.
Why Is UPLD Not Exciting?
- Products and services have few die-hard fans as sales have declined by 3.4% annually over the last five years
- Projected sales decline of 14% over the next 12 months indicates demand will continue deteriorating
- Poor free cash flow margin of 11.1% for the last year limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $1.46 per share, Upland Software trades at 0.2x forward price-to-sales. To fully understand why you should be careful with UPLD, check out our full research report (it’s free).
United Natural Foods (UNFI)
Rolling One-Year Beta: 1.22
With a vast network of 55 distribution centers spanning approximately 30 million square feet of warehouse space, United Natural Foods (NYSE: UNFI) is North America's premier grocery wholesaler distributing natural, organic, and conventional products to over 30,000 retail locations across the US and Canada.
Why Is UNFI Risky?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.5% over the last three years was below our standards for the consumer staples sector
- Incremental sales over the last three years were much less profitable as its earnings per share fell by 37.9% annually while its revenue grew
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
United Natural Foods is trading at $35.03 per share, or 15.7x forward P/E. Read our free research report to see why you should think twice about including UNFI in your portfolio.
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
