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3 Low-Volatility Stocks That Fall Short

FOXA Cover Image

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.

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

FOX (FOXA)

Rolling One-Year Beta: 0.67

Founded in 1915, Fox (NASDAQ: FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.

Why Should You Dump FOXA?

  1. Annual sales growth of 4.5% over the last two years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
  2. Sales are projected to tank by 2.6% over the next 12 months as demand evaporates
  3. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 4.5 percentage points over the next year

FOX is trading at $60.62 per share, or 14.2x forward P/E. Dive into our free research report to see why there are better opportunities than FOXA.

John Bean (JBTM)

Rolling One-Year Beta: 0.91

Tracing back to its invention of the mechanical milk bottle filler in 1884, John Bean (NYSE: JBT) designs, manufactures, and sells equipment used for food processing and aviation.

Why Does JBTM 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. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 6.1 percentage points
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $134.84 per share, John Bean trades at 20.1x forward P/E. Read our free research report to see why you should think twice about including JBTM in your portfolio.

Douglas Dynamics (PLOW)

Rolling One-Year Beta: 0.90

Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE: PLOW) offers snow and ice equipment for the roads and sidewalks.

Why Are We Out on PLOW?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.7% annually over the last two years
  2. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 3.8 percentage points
  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.2 percentage points

Douglas Dynamics’s stock price of $32.33 implies a valuation ratio of 14.8x forward P/E. To fully understand why you should be careful with PLOW, check out our full research report (it’s free).

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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 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.

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