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3 Low-Volatility Stocks We Find Risky

TGT 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.

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.

Target (TGT)

Rolling One-Year Beta: 0.83

With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE: TGT) serves the suburban consumer who is looking for a wide range of products under one roof.

Why Should You Dump TGT?

  1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  2. Gross margin of 28% is below its competitors, leaving less money for marketing and promotions
  3. Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability

At $115.44 per share, Target trades at 14.7x forward P/E. If you’re considering TGT for your portfolio, see our FREE research report to learn more.

Comcast (CMCSA)

Rolling One-Year Beta: 0.42

Formerly known as American Cable Systems, Comcast (NASDAQ: CMCSA) is a multinational telecommunications company offering a wide range of services.

Why Should You Sell CMCSA?

  1. Sluggish trends in its domestic broadband customers suggest customers aren’t adopting its solutions as quickly as the company hoped
  2. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 4.3 percentage points
  3. Returns on capital are increasing as management makes relatively better investment decisions

Comcast is trading at $31.50 per share, or 8.7x forward P/E. To fully understand why you should be careful with CMCSA, check out our full research report (it’s free).

STAAR Surgical (STAA)

Rolling One-Year Beta: 0.94

With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ: STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.

Why Do We Avoid STAA?

  1. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
  2. Free cash flow margin dropped by 37.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
  3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

STAAR Surgical’s stock price of $16.10 implies a valuation ratio of 29.6x forward P/E. Check out our free in-depth research report to learn more about why STAA doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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