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 to avoid and some better opportunities instead.

Carter's (CRI)

Rolling One-Year Beta: 0.88

Rumored to sell more than 10 products for every child born in the United States, Carter's (NYSE: CRI) is an American designer and marketer of children's apparel.

Why Is CRI Risky?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience
2. Poor free cash flow margin of 6.5% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Carter's is trading at $36.80 per share, or 14.4x forward P/E. Dive into our free research report to see why there are better opportunities than CRI.

ICF International (ICFI)

Rolling One-Year Beta: 0.55

Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ: ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors.

Why Do We Pass on ICFI?

1. Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 2.9% declines over the past two years
2. Estimated sales decline of 3% for the next 12 months implies an even more challenging demand environment
3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 6% annually

ICF International’s stock price of $87.13 implies a valuation ratio of 13x forward P/E. To fully understand why you should be careful with ICFI, check out our full research report (it’s free).

AT&T (T)

Rolling One-Year Beta: 0.27

Founded by Alexander Graham Bell, AT&T (NYSE: T) is a multinational telecomm conglomerate providing a range of communications and internet services.

Why Do We Avoid T?

1. Annual sales declines of 4.3% for the past five years show its products and services struggled to connect with the market
2. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 7.9% annually, worse than its revenue
3. Free cash flow margin is forecasted to shrink by 1.3 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors

At $27.12 per share, AT&T trades at 11.9x forward P/E. Check out our free in-depth research report to learn more about why T doesn’t pass our bar.

Stocks We Like More

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 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.