ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

3 Low-Volatility Stocks with Questionable Fundamentals

CABO Cover Image

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

Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.

Cable One (CABO)

Rolling One-Year Beta: 0.37

Founded in 1986, Cable One (NYSE: CABO) provides high-speed internet, cable television, and telephone services, primarily in smaller markets across the United States.

Why Are We Out on CABO?

  1. Performance surrounding its residential data subscribers has lagged its peers
  2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Cable One is trading at $162.85 per share, or 4.6x forward P/E. To fully understand why you should be careful with CABO, check out our full research report (it’s free).

Service International (SCI)

Rolling One-Year Beta: 0.45

Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.

Why Does SCI Give Us Pause?

  1. Sluggish trends in its funeral services performed suggest customers aren’t adopting its solutions as quickly as the company hoped
  2. Anticipated sales growth of 3% for the next year implies demand will be shaky
  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 $79.90 per share, Service International trades at 20.2x forward P/E. Dive into our free research report to see why there are better opportunities than SCI.

Blink Charging (BLNK)

Rolling One-Year Beta: 0.77

One of the first EV charging companies to go public, Blink Charging (NASDAQ: BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.

Why Is BLNK Not Exciting?

  1. Sales trends were unexciting over the last two years as its 5.4% annual growth was below the typical industrials company
  2. Negative free cash flow raises questions about the return timeline for its investments
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Blink Charging’s stock price of $1 implies a valuation ratio of 0.9x forward price-to-sales. Check out our free in-depth research report to learn more about why BLNK doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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 Kadant (+351% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.