A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.
Darden (DRI)
Rolling One-Year Beta: 0.45
Founded in 1968 as Red Lobster, Darden (NYSE: DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Why Does DRI Give Us Pause?
- Sizable revenue base leads to growth challenges as its 6% annual revenue increases over the last six years fell short of other restaurant companies
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Gross margin of 21.5% is below its competitors, leaving less money for marketing and promotions
Darden is trading at $205.98 per share, or 19.1x forward P/E. If you’re considering DRI for your portfolio, see our FREE research report to learn more.
Danaher (DHR)
Rolling One-Year Beta: 0.84
Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE: DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.
Why Do We Think Twice About DHR?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.9% annually over the last two years
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- 7.9 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 $206.35 per share, Danaher trades at 25.5x forward P/E. Check out our free in-depth research report to learn more about why DHR doesn’t pass our bar.
Franklin Resources (BEN)
Rolling One-Year Beta: 0.94
Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE: BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.
Why Do We Steer Clear of BEN?
- Annual revenue growth of 2.3% over the last two years was below our standards for the financials sector
- Earnings per share fell by 4.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- ROE of 8.5% reflects management’s challenges in identifying attractive investment opportunities
Franklin Resources’s stock price of $25.29 implies a valuation ratio of 10.8x forward P/E. Read our free research report to see why you should think twice about including BEN in your portfolio.
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 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 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
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