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.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.
Flowers Foods (FLO)
Rolling One-Year Beta: 0.13
With Wonder Bread as its premier brand, Flower Foods (NYSE: FLO) is a packaged foods company that focuses on bakery products such as breads, buns, and cakes.
Why Does FLO Worry Us?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Estimated sales growth of 3.7% for the next 12 months is soft and implies weaker demand
- Earnings per share have dipped by 1.4% annually over the past three years, which is concerning because stock prices follow EPS over the long term
At $15.63 per share, Flowers Foods trades at 14.2x forward P/E. If you’re considering FLO for your portfolio, see our FREE research report to learn more.
MGIC Investment (MTG)
Rolling One-Year Beta: 0.72
Founded in 1957 when the modern mortgage insurance industry was in its infancy, MGIC Investment (NYSE: MTG) provides private mortgage insurance that protects lenders when homebuyers default on their loans, enabling borrowers to purchase homes with smaller down payments.
Why Are We Wary of MTG?
- Insurance policy sales contracted this cycle as net premiums earned decreased by 1.3% annually over the last five years
- Expenses have increased as a percentage of revenue over the last two years as its combined ratio degraded by 10.7 percentage points
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 6.1% annually
MGIC Investment’s stock price of $27.54 implies a valuation ratio of 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than MTG.
Westamerica Bancorporation (WABC)
Rolling One-Year Beta: 0.87
Founded in 1884 and serving communities from Mendocino County in the north to Kern County in the south, Westamerica Bancorporation (NASDAQ: WABC) provides banking services to individuals and small businesses throughout Northern and Central California.
Why Are We Cautious About WABC?
- 6.5% annual net interest income growth over the last five years was slower than its banking peers
- Net interest income is projected to tank by 8.9% over the next 12 months as demand evaporates
- Operating profits are forecasted to fall over the next year as its sales crater
Westamerica Bancorporation is trading at $48.70 per share, or 1.3x forward P/B. To fully understand why you should be careful with WABC, check out our full research report (it’s free).
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum 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 Exlservice (+354% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
