Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.
J&J Snack Foods (JJSF)
Rolling One-Year Beta: 0.17
Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ: JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers.
Why Does JJSF Fall Short?
- Modest revenue base of $1.6 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Estimated sales growth of 1.6% for the next 12 months implies demand will slow from its three-year trend
- Capital intensity has ramped up over the last year as its free cash flow margin decreased by 2.7 percentage points
J&J Snack Foods’s stock price of $95.36 implies a valuation ratio of 20.8x forward P/E. Check out our free in-depth research report to learn more about why JJSF doesn’t pass our bar.
Columbia Sportswear (COLM)
Rolling One-Year Beta: 0.55
Originally founded as a hat store in 1938, Columbia Sportswear (NASDAQ: COLM) is a manufacturer of outerwear, sportswear, and footwear designed for outdoor enthusiasts.
Why Should You Dump COLM?
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Free cash flow margin is forecasted to shrink by 4.1 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- Waning returns on capital imply its previous profit engines are losing steam
At $53.39 per share, Columbia Sportswear trades at 20.4x forward P/E. To fully understand why you should be careful with COLM, check out our full research report (it’s free for active Edge members).
Main Street Capital (MAIN)
Rolling One-Year Beta: 0.67
With a focus on building long-term partnerships rather than quick transactions, Main Street Capital (NYSE: MAIN) is a business development company that provides long-term debt and equity capital to lower middle market and middle market companies.
Why Are We Hesitant About MAIN?
- Incremental sales over the last two years were less profitable as its 1.7% annual earnings per share growth lagged its revenue gains
Main Street Capital is trading at $61.42 per share, or 15.3x forward P/E. If you’re considering MAIN for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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
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