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.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. That said, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.
Leggett & Platt (LEG)
Rolling One-Year Beta: 0.95
Founded in 1883, Leggett & Platt (NYSE: LEG) is a diversified manufacturer of products and components for various industries.
Why Do We Pass on LEG?
- Sales tumbled by 1.5% annually over the last five years, showing consumer trends are working against its favor
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $9.61 per share, Leggett & Platt trades at 8.8x forward P/E. Check out our free in-depth research report to learn more about why LEG doesn’t pass our bar.
FedEx (FDX)
Rolling One-Year Beta: 0.71
Sporting one of the largest air cargo fleets in the world, FedEx (NYSE: FDX) is a global provider of parcel and cargo delivery services.
Why Do We Avoid FDX?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.6% annually over the last two years
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 1.9% annually
FedEx is trading at $210.88 per share, or 9.7x forward P/E. To fully understand why you should be careful with FDX, check out our full research report (it’s free).
Verisk (VRSK)
Rolling One-Year Beta: 0.45
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Why Does VRSK Give Us Pause?
- 2% annual revenue growth over the last five years was slower than its business services peers
- Earnings per share lagged its peers over the last two years as they only grew by 9.6% annually
Verisk’s stock price of $294.51 implies a valuation ratio of 40.8x forward P/E. Dive into our free research report to see why there are better opportunities than VRSK.
Stocks That Overcame Trump’s 2018 Tariffs
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
