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3 Low-Volatility Stocks That Fall Short

AMCX Cover Image

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

Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here are three low-volatility stocks to steer clear of and a few better alternatives.

AMC Networks (AMCX)

Rolling One-Year Beta: 0.85

Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ: AMCX) is a broadcaster producing a diverse range of television shows and movies.

Why Do We Pass on AMCX?

  1. Products and services have few die-hard fans as sales have declined by 4% annually over the last five years
  2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
  3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

AMC Networks is trading at $7.22 per share, or 2.4x forward P/E. If you’re considering AMCX for your portfolio, see our FREE research report to learn more.

Revvity (RVTY)

Rolling One-Year Beta: 0.90

Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE: RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.

Why Is RVTY Risky?

  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. Adjusted operating profits fell over the last five years as its sales dropped and it struggled to adjust its fixed costs
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Revvity’s stock price of $94.15 implies a valuation ratio of 17.8x forward P/E. Check out our free in-depth research report to learn more about why RVTY doesn’t pass our bar.

DXC (DXC)

Rolling One-Year Beta: 0.89

Born from the 2017 merger of Computer Sciences Corporation and HP Enterprise's services business, DXC Technology (NYSE: DXC) is a global IT services company that helps businesses transform their technology infrastructure, applications, and operations.

Why Do We Think DXC Will Underperform?

  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. Earnings per share have dipped by 3.6% annually over the past five years, which is concerning because stock prices follow EPS over the long term
  3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up

At $14.25 per share, DXC trades at 4.6x forward P/E. Read our free research report to see why you should think twice about including DXC in your portfolio.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "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.

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