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. Keeping that in mind, here are three low-volatility stocks to avoid and some better opportunities instead.

Constellation Brands (STZ)

Rolling One-Year Beta: 0.53

With a presence in more than 100 countries, Constellation Brands (NYSE: STZ) is a globally renowned producer and marketer of beer, wine, and spirits.

Why Is STZ Not Exciting?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Projected sales decline of 6.3% for the next 12 months points to an even tougher demand environment ahead
3. ROIC of 9% reflects management’s challenges in identifying attractive investment opportunities, and its falling returns suggest its earlier profit pools are drying up

Constellation Brands’s stock price of $142.70 implies a valuation ratio of 12x forward P/E. Read our free research report to see why you should think twice about including STZ in your portfolio.

Deere (DE)

Rolling One-Year Beta: 0.86

Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE: DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.

Why Do We Think DE Will Underperform?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 18.1% annually over the last two years
2. Sales were less profitable over the last two years as its earnings per share fell by 25.6% annually, worse than its revenue declines
3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $461 per share, Deere trades at 24.1x forward P/E. If you’re considering DE for your portfolio, see our FREE research report to learn more.

Winnebago (WGO)

Rolling One-Year Beta: 0.89

Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE: WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.

Why Are We Out on WGO?

1. Annual sales declines of 16.1% for the past two years show its products and services struggled to connect with the market during this cycle
2. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Winnebago is trading at $32.13 per share, or 15.2x forward P/E. Check out our free in-depth research report to learn more about why WGO 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 9 Market-Beating Stocks. 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

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.