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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.

At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here are three volatile stocks to steer clear of and a few better alternatives.

Marvell Technology (MRVL)

Rolling One-Year Beta: 3.08

Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.

Why Does MRVL Give Us Pause?

1. Sales tumbled by 1.3% annually over the last two years, showing market trends are working against its favor during this cycle

2. Historical operating losses point to an inefficient cost structure

3. Push for growth has led to negative returns on capital, signaling value destruction, and its falling returns suggest its earlier profit pools are drying up

Marvell Technology’s stock price of $58.96 implies a valuation ratio of 22x forward P/E. Check out our free in-depth research report to learn more about why MRVL doesn’t pass our bar.

Carnival (CCL)

Rolling One-Year Beta: 1.74

Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE:CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.

Why Should You Sell CCL?

1. Sizable revenue base leads to growth challenges as its 4% annual revenue increases over the last five years fell short of other consumer discretionary companies

2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 16.9% annually while its revenue grew

3. Negative returns on capital show management lost money while trying to expand the business

Carnival is trading at $19.74 per share, or 10.8x forward P/E. If you’re considering CCL for your portfolio, see our FREE research report to learn more.

Belden (BDC)

Rolling One-Year Beta: 1.35

With its enamel-coated copper wire used in WWI for the Allied forces, Belden (NYSE:BDC) designs, manufactures, and sells electronic components to various industries.

Why Do We Think Twice About BDC?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.7% annually over the last two years

2. Anticipated sales growth of 4.3% for the next year implies demand will be shaky

3. Flat earnings per share over the last two years lagged its peers