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

Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.

Zoom (ZM)

Rolling One-Year Beta: 0.84

Started by Eric Yuan who once ran engineering for Cisco’s video conferencing business, Zoom (NASDAQ: ZM) offers an easy to use, cloud-based platform for video conferencing, audio conferencing and screen sharing.

Why Is ZM Not Exciting?

1. Average billings growth of 5% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
2. Competitive market dynamics make it difficult to retain customers, leading to a weak 98% net revenue retention rate
3. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3%

At $75.75 per share, Zoom trades at 4.9x forward price-to-sales. Check out our free in-depth research report to learn more about why ZM doesn’t pass our bar.

Brown-Forman (BF.B)

Rolling One-Year Beta: 0.49

Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE: BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.

Why Does BF.B Worry Us?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Forecasted revenue decline of 3% for the upcoming 12 months implies demand will fall off a cliff
3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 6 percentage points

Brown-Forman’s stock price of $30.90 implies a valuation ratio of 15.9x forward P/E. If you’re considering BF.B for your portfolio, see our FREE research report to learn more.

MGP Ingredients (MGPI)

Rolling One-Year Beta: 0.79

Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ: MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry

Why Do We Pass on MGPI?

1. Annual sales declines of 2.8% for the past three years show its products struggled to connect with the market
2. Forecasted revenue decline of 19.8% for the upcoming 12 months implies demand will fall even further
3. Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs

MGP Ingredients is trading at $32.49 per share, or 12.3x forward P/E. Read our free research report to see why you should think twice about including MGPI in your portfolio.

Stocks We Like More

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 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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