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.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.
Etsy (ETSY)
Rolling One-Year Beta: 0.87
Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ: ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Why Are We Cautious About ETSY?
- Active Buyers have stagnated over the last two years, indicating its platform may be struggling to differentiate itself from competitors
- Estimated sales growth of 2.8% for the next 12 months implies demand will slow from its three-year trend
- Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 1.1% annually
At $54.98 per share, Etsy trades at 9.7x forward EV/EBITDA. To fully understand why you should be careful with ETSY, check out our full research report (it’s free for active Edge members).
ICU Medical (ICUI)
Rolling One-Year Beta: 0.55
Founded in 1984 and named for its initial focus on intensive care units, ICU Medical (NASDAQ: ICUI) develops and manufactures medical products for infusion therapy, vascular access, and vital care applications used in hospitals and other healthcare settings.
Why Do We Avoid ICUI?
- Muted 1.5% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
- Estimated sales decline of 8.5% for the next 12 months implies a challenging demand environment
- 11.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
ICU Medical’s stock price of $146.28 implies a valuation ratio of 20x forward P/E. Read our free research report to see why you should think twice about including ICUI in your portfolio.
MarketAxess (MKTX)
Rolling One-Year Beta: -0.19
Pioneering the shift from phone-based to electronic bond trading since 2000, MarketAxess (NASDAQ: MKTX) operates electronic trading platforms that enable institutional investors and broker-dealers to efficiently trade fixed-income securities like corporate and government bonds.
Why Does MKTX Give Us Pause?
- Muted 5.3% annual revenue growth over the last five years shows its demand lagged behind its financials peers
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
MarketAxess is trading at $160.03 per share, or 20.9x forward P/E. Dive into our free research report to see why there are better opportunities than MKTX.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 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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