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. Keeping that in mind, here are three low-volatility stocks to steer clear of and a few better alternatives.

Qualys (QLYS)

Rolling One-Year Beta: 0.63

Originally developed to address the growing complexity of IT security in the cloud era, Qualys (NASDAQ: QLYS) provides a cloud-based platform that helps organizations identify, manage, and protect their IT assets from cyber threats across on-premises, cloud, and mobile environments.

Why Are We Cautious About QLYS?

1. Offerings struggled to generate meaningful interest as its average billings growth of 8.3% over the last year did not impress
2. Estimated sales growth of 7.8% for the next 12 months implies demand will slow from its two-year trend
3. Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient

Qualys’s stock price of $104.35 implies a valuation ratio of 5.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than QLYS.

Boston Beer (SAM)

Rolling One-Year Beta: 0.41

Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE: SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.

Why Does SAM Worry Us?

1. Flat sales over the last three years suggest it must innovate and find new ways to grow
2. Revenue base of $1.98 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
3. Estimated sales for the next 12 months are flat and imply a softer demand environment

Boston Beer is trading at $231.50 per share, or 22x forward P/E. To fully understand why you should be careful with SAM, check out our full research report (it’s free).

Assured Guaranty (AGO)

Rolling One-Year Beta: 0.52

Serving as a financial safety net for over $11 trillion in debt service payments since its founding in 2003, Assured Guaranty (NYSE: AGO) provides credit protection products that guarantee scheduled payments on municipal bonds, infrastructure projects, and structured finance obligations.

Why Should You Sell AGO?

1. Insurance policy sales contracted this cycle as net premiums earned decreased by 3.6% annually over the last five years
2. Projected sales decline of 20% over the next 12 months indicates demand will continue deteriorating
3. Underwhelming 7.8% return on equity reflects management’s difficulties in finding profitable growth opportunities

At $86.95 per share, Assured Guaranty trades at 0.7x forward P/B. Read our free research report to see why you should think twice about including AGO in your portfolio.

High-Quality Stocks for All Market Conditions

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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.