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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 avoid and some better opportunities instead.

Seagate Technology (STX)

Rolling One-Year Beta: 1.98

The developer of the original 5.25inch hard disk drive, Seagate (NASDAQ:STX) is a leading producer of data storage solutions, including hard drives and Solid State Drives (SSDs) used in PCs and data centers.

Why Does STX Fall Short?

1. Annual sales declines of 3.8% for the past five years show its products and services struggled to connect with the market during this cycle

2. High input costs result in an inferior gross margin of 28.4% that must be offset through higher volumes

3. Low free cash flow margin of 8.3% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

At $117.90 per share, Seagate Technology trades at 13.2x forward P/E. Dive into our free research report to see why there are better opportunities than STX.

Marriott (MAR)

Rolling One-Year Beta: 1.09

Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ:MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.

Why Is MAR Not Exciting?

1. Weak revenue per room over the past two years indicates challenges in maintaining pricing power and occupancy rates

2. Estimated sales growth of 4.3% for the next 12 months implies demand will slow from its two-year trend

3. Poor free cash flow margin of 9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Marriott’s stock price of $264.27 implies a valuation ratio of 25.6x forward P/E. To fully understand why you should be careful with MAR, check out our full research report (it’s free).

Blink Charging (BLNK)

Rolling One-Year Beta: 1.15

One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.

Why Are We Cautious About BLNK?

1. Earnings per share fell by 10.2% annually over the last five years while its revenue grew, partly because it diluted shareholders

2. Cash-burning history makes us doubt the long-term viability of its business model

3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders