Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.

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 that don’t make the cut and some better opportunities instead.

Etsy (ETSY)

Rolling One-Year Beta: 0.50

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 Hesitant About ETSY?

1. Increasing competition is redirecting attention to other platforms as it failed to grow its active buyers over the last two years
2. Projected sales decline of 2% for the next 12 months points to a tough demand environment ahead
3. Earnings per share lagged its peers over the last three years as they only grew by 2.6% annually

Etsy’s stock price of $57.70 implies a valuation ratio of 8.2x forward EV/EBITDA. To fully understand why you should be careful with ETSY, check out our full research report (it’s free).

Brady (BRC)

Rolling One-Year Beta: 0.55

Founded in 1914 and evolving through more than a century of industrial innovation, Brady (NYSE: BRC) manufactures and supplies identification solutions and workplace safety products that help companies identify and protect their premises, products, and people.

Why Do We Think Twice About BRC?

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. Subscale operations are evident in its revenue base of $1.46 billion, meaning it has fewer distribution channels than its larger rivals
3. Free cash flow margin dropped by 3.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Brady is trading at $69.01 per share, or 14x forward P/E. Read our free research report to see why you should think twice about including BRC in your portfolio.

U-Haul (UHAL)

Rolling One-Year Beta: 0.65

Founded by a husband and wife duo, U-Haul (NYSE: UHAL) is a provider of rental trucks and storage facilities.

Why Do We Pass on UHAL?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. 36.3 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
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $61.91 per share, U-Haul trades at 2.1x trailing 12-month price-to-sales. If you’re considering UHAL for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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 Exlservice (+354% 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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