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3 Volatile Stocks We’re Skeptical Of
Yahoo Finance· 2025-11-06 18:33
Core Insights - The article discusses the challenges of investing in volatile stocks and highlights three specific companies to avoid, along with better alternatives for investors [1] Company Summaries Vicor (VICR) - Vicor is trading at $92.17 per share with a forward P/E ratio of 46.3x, indicating a high valuation [4] - The company has a rolling one-year beta of 2.15, suggesting significant volatility in its stock price [2] MasTec (MTZ) - MasTec's stock price is $197.41, reflecting a forward P/E ratio of 26x, which raises concerns about its valuation [7] - The company has a rolling one-year beta of 1.62, indicating moderate volatility [5] Pitney Bowes (PBI) - Pitney Bowes has a rolling one-year beta of 1.33, suggesting lower volatility compared to the other two companies [8] - The company has experienced a revenue decline of 10.5% annually over the last five years, raising concerns about its future growth potential [9] - The average backlog growth of 1.2% over the past two years indicates weak future revenue growth prospects [10] - Operating margins have decreased by 8.6 percentage points, and expenses have risen as a percentage of revenue over the last five years [10] - The gross margin stands at 12.9%, which is considered inferior, and the operating margin has declined to 3.1% [11] - Projected sales are expected to decline by 3.4% over the next 12 months, indicating ongoing demand deterioration [12]