A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here are three low-volatility stocks to steer clear of and a few better alternatives.
Zumiez (ZUMZ)
Rolling One-Year Beta: 0.87
With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ:ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.
Why Is ZUMZ Risky?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Poor expense management has led to operating margin losses
- Earnings per share have dipped by 57.7% annually over the past six years, which is concerning because stock prices follow EPS over the long term
Zumiez is trading at $11.90 per share, or 45.1x forward P/E. If you’re considering ZUMZ for your portfolio, see our FREE research report to learn more.
Dentsply Sirona (XRAY)
Rolling One-Year Beta: 0.20
With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ:XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide.
Why Do We Avoid XRAY?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 7% annually, worse than its revenue
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $16.16 per share, Dentsply Sirona trades at 8.5x forward P/E. To fully understand why you should be careful with XRAY, check out our full research report (it’s free).
Amdocs (DOX)
Rolling One-Year Beta: 0.51
Powering the digital experiences of approximately 400 communications companies worldwide, Amdocs (NASDAQ:DOX) provides software and services that help telecommunications and media companies manage customer relationships, monetize services, and automate network operations.
Why Do We Pass on DOX?
- New orders were hard to come by as its average backlog growth of 1.6% over the past two years underwhelmed
- Projected sales decline of 3.5% for the next 12 months points to an even tougher demand environment ahead
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.6 percentage points
Amdocs’s stock price of $92.92 implies a valuation ratio of 12.8x forward P/E. Dive into our free research report to see why there are better opportunities than DOX.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.