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3 Low-Volatility Stocks We Think Twice About

CDRE 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.

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.

Cadre (CDRE)

Rolling One-Year Beta: 0.70

Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.

Why Are We Wary of CDRE?

  1. Estimated sales growth of 6.7% for the next 12 months implies demand will slow from its two-year trend
  2. Earnings per share lagged its peers over the last four years as they only grew by 3.5% annually
  3. Eroding returns on capital suggest its historical profit centers are aging

At $40.84 per share, Cadre trades at 28.8x forward P/E. If you’re considering CDRE for your portfolio, see our FREE research report to learn more.

Haemonetics (HAE)

Rolling One-Year Beta: 0.10

With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE: HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.

Why Are We Hesitant About HAE?

  1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
  2. Revenue base of $1.33 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
  3. Estimated sales growth of 1.6% for the next 12 months implies demand will slow from its two-year trend

Haemonetics is trading at $80.64 per share, or 15.5x forward P/E. To fully understand why you should be careful with HAE, check out our full research report (it’s free for active Edge members).

TowneBank (TOWN)

Rolling One-Year Beta: 0.95

Founded in 1998 with a commitment to community-centered banking in the Hampton Roads region, TowneBank (NASDAQ: TOWN) is a community-focused financial institution providing banking, lending, and wealth management services to individuals and businesses in Virginia and North Carolina.

Why Does TOWN Fall Short?

  1. Sales trends were unexciting over the last five years as its 5.1% annual growth was below the typical banking company
  2. 7.2% annual net interest income growth over the last five years was slower than its banking peers
  3. Estimated tangible book value per share growth of 2.3% for the next 12 months implies profitability will slow from its two-year trend

TowneBank’s stock price of $33.21 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why TOWN doesn’t pass our bar.

Stocks We Like More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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