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 that don’t make the cut and some better opportunities instead.
Campbell's (CPB)
Rolling One-Year Beta: 0.28
With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ: CPB) is a packaged food company with an illustrious portfolio of brands.
Why Are We Out on CPB?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Estimated sales decline of 3.1% for the next 12 months implies a challenging demand environment
- Incremental sales over the last three years were less profitable as its 1.6% annual earnings per share growth lagged its revenue gains
At $30.65 per share, Campbell's trades at 12.5x forward P/E. If you’re considering CPB for your portfolio, see our FREE research report to learn more.
MSCI (MSCI)
Rolling One-Year Beta: 0.82
Originally known as Morgan Stanley Capital International before becoming independent in 2007, MSCI (NYSE: MSCI) provides critical decision support tools, indexes, and analytics that help global investors understand risk and return factors and build more effective investment portfolios.
Why Do We Think Twice About MSCI?
- Push for growth has led to negative returns on capital, signaling value destruction
MSCI’s stock price of $533 implies a valuation ratio of 29.5x forward P/E. Read our free research report to see why you should think twice about including MSCI in your portfolio.
AGNC Investment (AGNC)
Rolling One-Year Beta: 0.51
Born during the 2008 financial crisis when mortgage markets were in turmoil, AGNC Investment (NASDAQ: AGNC) is a real estate investment trust that primarily invests in mortgage-backed securities guaranteed by U.S. government agencies or enterprises.
Why Should You Sell AGNC?
- Annual net interest income declines of 28.5% for the past five years show its loan book struggled during this cycle
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 7.1% annually while its revenue grew
- Annual tangible book value per share declines of 12.1% for the past five years show its capital management struggled during this cycle
AGNC Investment is trading at $9.92 per share, or 1.1x forward P/B. Check out our free in-depth research report to learn more about why AGNC doesn’t pass our bar.
Stocks We Like More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our 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
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