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3 Low-Volatility Stocks That Concern Us

WDFC Cover Image

Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.

WD-40 (WDFC)

Rolling One-Year Beta: -0.01

Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ: WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.

Why Are We Wary of WDFC?

  1. Sales trends were unexciting over the last three years as its 6.1% annual growth was below the typical consumer staples company
  2. Revenue base of $620 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  3. Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its three-year trend

WD-40’s stock price of $200.90 implies a valuation ratio of 31.8x forward P/E. To fully understand why you should be careful with WDFC, check out our full research report (it’s free for active Edge members).

Dole (DOLE)

Rolling One-Year Beta: 0.32

Known for its delicious pineapples and Hawaiian roots, Dole (NYSE: DOLE) is a global agricultural company specializing in fresh fruits and vegetables.

Why Do We Avoid DOLE?

  1. Sales were flat over the last three years, indicating it’s failed to expand its business
  2. Gross margin of 8.2% is an output of its commoditized products
  3. Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability

Dole is trading at $15.12 per share, or 10.6x forward P/E. Check out our free in-depth research report to learn more about why DOLE doesn’t pass our bar.

Otis (OTIS)

Rolling One-Year Beta: 0.51

Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE: OTIS) is an elevator and escalator manufacturing, installation and service company.

Why Is OTIS Not Exciting?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Estimated sales growth of 4.8% for the next 12 months is soft and implies weaker demand
  3. Free cash flow margin shrank by 2.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $87.82 per share, Otis trades at 20.4x forward P/E. Read our free research report to see why you should think twice about including OTIS in your portfolio.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. 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 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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