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 Open Questions

GDDY 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. Keeping that in mind, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.

GoDaddy (GDDY)

Rolling One-Year Beta: 0.74

Known for its memorable Super Bowl commercials that put it on the map, GoDaddy (NYSE: GDDY) is a domain registrar and web services provider that helps entrepreneurs establish an online presence through domain registration, website building, hosting, and e-commerce tools.

Why Should You Dump GDDY?

  1. Underwhelming ARR growth of 8.4% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
  2. Estimated sales growth of 6.5% for the next 12 months is soft and implies weaker demand
  3. Steep infrastructure costs and weaker unit economics for a software company are reflected in its low gross margin of 63.6%

GoDaddy’s stock price of $88.01 implies a valuation ratio of 2.4x forward price-to-sales. Check out our free in-depth research report to learn more about why GDDY doesn’t pass our bar.

WSFS Financial (WSFS)

Rolling One-Year Beta: 0.70

Founded in 1832 as Wilmington Savings Fund Society and one of the oldest banks in America still operating under its original name, WSFS Financial (NASDAQ: WSFS) operates a community banking and wealth management franchise primarily serving customers in the Mid-Atlantic region through its main subsidiary, WSFS Bank.

Why Do We Think Twice About WSFS?

  1. 9.3% annual net interest income growth over the last five years was slower than its banking peers
  2. Estimated net interest income growth of 2.6% for the next 12 months implies demand will slow from its five-year trend
  3. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 26.9 basis points (100 basis points = 1 percentage point)

At $66.80 per share, WSFS Financial trades at 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than WSFS.

OFG Bancorp (OFG)

Rolling One-Year Beta: 0.73

Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE: OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands.

Why Are We Hesitant About OFG?

  1. Muted 8.3% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
  2. Forecasted net interest income decline of 2.2% for the upcoming 12 months implies demand will fall off a cliff
  3. Net interest margin dropped by 77.7 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market

OFG Bancorp is trading at $41.91 per share, or 1.2x forward P/B. If you’re considering OFG for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  207.92
-2.72 (-1.29%)
AAPL  272.95
-1.28 (-0.47%)
AMD  213.84
+0.00 (0.00%)
BAC  52.30
+0.61 (1.18%)
GOOG  307.15
-5.88 (-1.88%)
META  657.01
+3.32 (0.51%)
MSFT  389.00
+0.00 (0.00%)
NVDA  184.89
-10.67 (-5.46%)
ORCL  150.31
+2.42 (1.64%)
TSLA  408.58
-8.82 (-2.11%)
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 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.