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

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 avoid and some better opportunities instead.

Werner (WERN)

Rolling One-Year Beta: 0.79

Conducting business in over a 100 countries, Werner (NASDAQ: WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.

Why Do We Steer Clear of WERN?

1. Sales tumbled by 5.9% annually over the last two years, showing market trends are working against its favor during this cycle
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 41.7% annually
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Werner’s stock price of $28.23 implies a valuation ratio of 23.4x forward P/E. To fully understand why you should be careful with WERN, check out our full research report (it’s free).

IQVIA (IQV)

Rolling One-Year Beta: 0.63

Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE: IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.

Why Does IQV Fall Short?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.4% for the last two years
2. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
3. 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

At $163.25 per share, IQVIA trades at 13.4x forward P/E. Check out our free in-depth research report to learn more about why IQV doesn’t pass our bar.

Apollo Commercial Real Estate Finance (ARI)

Rolling One-Year Beta: 0.42

Launched during the aftermath of the 2008 financial crisis to capitalize on disruption in commercial real estate lending, Apollo Commercial Real Estate Finance (NYSE: ARI) is a real estate investment trust that originates and invests in commercial mortgage loans and other real estate debt.

Why Do We Pass on ARI?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.2% annually over the last two years
2. Sales were less profitable over the last five years as its earnings per share fell by 15.1% annually, worse than its revenue declines
3. Annual tangible book value per share declines of 3% for the past five years show its capital management struggled during this cycle

Apollo Commercial Real Estate Finance is trading at $9.87 per share, or 0.8x forward P/B. Read our free research report to see why you should think twice about including ARI in your portfolio.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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-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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