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. Keeping that in mind, here are three low-volatility stocks to avoid and some better opportunities instead.
Amtech (ASYS)
Rolling One-Year Beta: 0.54
Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ: ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors.
Why Do We Steer Clear of ASYS?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 15.8% annually over the last two years
- Poor expense management has led to operating margin losses
- Issuance of new shares over the last five years caused its earnings per share to fall by 17.8% annually while its revenue grew
Amtech is trading at $8.75 per share, or 66.5x forward P/E. Read our free research report to see why you should think twice about including ASYS in your portfolio.
Veralto (VLTO)
Rolling One-Year Beta: 0.72
Spun off from Danaher in 2023, Veralto (NYSE: VLTO) provides water analytics and treatment solutions.
Why Does VLTO Give Us Pause?
- 4.4% annual revenue growth over the last four years was slower than its industrials peers
- Projected sales growth of 5.4% for the next 12 months suggests sluggish demand
At $102.16 per share, Veralto trades at 24.8x forward P/E. To fully understand why you should be careful with VLTO, check out our full research report (it’s free for active Edge members).
Lockheed Martin (LMT)
Rolling One-Year Beta: 0.39
Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE: LMT) specializes in defense, space, homeland security, and information technology products.
Why Is LMT Risky?
- Average backlog growth of 6.8% over the past two years was mediocre and suggests fewer customers signed long-term contracts
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 5.2% annually while its revenue grew
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Lockheed Martin’s stock price of $446.88 implies a valuation ratio of 15.9x forward P/E. Dive into our free research report to see why there are better opportunities than LMT.
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 Growth Stocks for this month. 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
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.
