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 steer clear of and a few better alternatives.
Taylor Morrison Home (TMHC)
Rolling One-Year Beta: 0.62
Named “America’s Most Trusted Home Builder” in 2019, Taylor Morrison Home (NYSE: TMHC) builds single family homes and communities across the United States.
Why Does TMHC Worry Us?
- Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 14.5% declines over the past two years
- Sales are projected to tank by 13.6% over the next 12 months as demand evaporates
- Earnings per share lagged its peers over the last two years as they only grew by 2.6% annually
Taylor Morrison Home is trading at $57.87 per share, or 9x forward P/E. Dive into our free research report to see why there are better opportunities than TMHC.
Horace Mann Educators (HMN)
Rolling One-Year Beta: 0.29
Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE: HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.
Why Is HMN Risky?
- 5.3% annualized net premiums earned growth over the last five years lagged behind its insurance peers
- Annual book value per share declines of 3.2% for the past five years show its capital management struggled during this cycle
- ROE of 6.7% reflects management’s challenges in identifying attractive investment opportunities
Horace Mann Educators’s stock price of $45.94 implies a valuation ratio of 1.3x forward P/B. If you’re considering HMN for your portfolio, see our FREE research report to learn more.
Republic Bancorp (RBCAA)
Rolling One-Year Beta: 0.72
With roots dating back to 1974 and operating across multiple states including Kentucky, Indiana, Florida, Ohio, and Tennessee, Republic Bancorp (NASDAQGS:RBCA.A) is a Kentucky-based financial holding company that operates a bank offering traditional banking, mortgage services, and specialized financial products.
Why Is RBCAA Not Exciting?
- Net interest income is projected to tank by 1.7% over the next 12 months as demand evaporates
At $65.68 per share, Republic Bancorp trades at 1.2x forward P/B. To fully understand why you should be careful with RBCAA, check out our full research report (it’s free for active Edge members).
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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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