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 to steer clear of and a few better alternatives.
Carter's (CRI)
Rolling One-Year Beta: 0.38
Rumored to sell more than 10 products for every child born in the United States, Carter's (NYSE: CRI) is an American designer and marketer of children's apparel.
Why Are We Out on CRI?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Eroding returns on capital suggest its historical profit centers are aging
Carter's is trading at $30.76 per share, or 8.7x forward P/E. Read our free research report to see why you should think twice about including CRI in your portfolio.
Vail Resorts (MTN)
Rolling One-Year Beta: 0.57
Founded by two Aspen, Colorado ski patrol guides, Vail Resorts (NYSE: MTN) is a mountain resort company offering luxury experiences in over 30 locations across the globe.
Why Do We Think Twice About MTN?
- Lackluster 1.2% annual revenue growth over the last two years indicates the company is losing ground to competitors
- Sluggish trends in its skier visits suggest customers aren’t adopting its solutions as quickly as the company hoped
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.4%
At $160.30 per share, Vail Resorts trades at 19.6x forward P/E. Dive into our free research report to see why there are better opportunities than MTN.
Vulcan Materials (VMC)
Rolling One-Year Beta: 0.72
Founded in 1909, Vulcan Materials (NYSE: VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.
Why Are We Hesitant About VMC?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Performance surrounding its tons shipped has lagged its peers
- Free cash flow margin shrank by 5.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Vulcan Materials’s stock price of $260.20 implies a valuation ratio of 31.2x forward P/E. Check out our free in-depth research report to learn more about why VMC doesn’t pass our bar.
Stocks We Like More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 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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