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.
FOX (FOXA)
Rolling One-Year Beta: 0.67
Founded in 1915, Fox (NASDAQ: FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.
Why Should You Dump FOXA?
- Annual sales growth of 4.5% over the last two years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
- Sales are projected to tank by 2.6% over the next 12 months as demand evaporates
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 4.5 percentage points over the next year
FOX is trading at $60.62 per share, or 14.2x forward P/E. Dive into our free research report to see why there are better opportunities than FOXA.
John Bean (JBTM)
Rolling One-Year Beta: 0.91
Tracing back to its invention of the mechanical milk bottle filler in 1884, John Bean (NYSE: JBT) designs, manufactures, and sells equipment used for food processing and aviation.
Why Does JBTM Worry Us?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 6.1 percentage points
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $134.84 per share, John Bean trades at 20.1x forward P/E. Read our free research report to see why you should think twice about including JBTM in your portfolio.
Douglas Dynamics (PLOW)
Rolling One-Year Beta: 0.90
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE: PLOW) offers snow and ice equipment for the roads and sidewalks.
Why Are We Out on PLOW?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2.7% annually over the last two years
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 3.8 percentage points
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.2 percentage points
Douglas Dynamics’s stock price of $32.33 implies a valuation ratio of 14.8x forward P/E. To fully understand why you should be careful with PLOW, check out our full research report (it’s free).
Stocks We Like More
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-micro-cap company Kadant (+351% 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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