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.

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.

Yum China (YUMC)

Rolling One-Year Beta: 0.63

One of China’s largest restaurant companies, Yum China (NYSE: YUMC) is an independent entity spun off from Yum! Brands in 2016.

Why Does YUMC Fall Short?

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. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 5.6%
3. Lacking pricing power results in an inferior gross margin of 20.1% that must be offset by turning more tables

At $47.13 per share, Yum China trades at 17.3x forward P/E. Dive into our free research report to see why there are better opportunities than YUMC.

ASGN (ASGN)

Rolling One-Year Beta: 0.64

Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, ASGN (NYSE: ASGN) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.

Why Is ASGN Risky?

1. Annual sales declines of 6.2% for the past two years show its products and services struggled to connect with the market during this cycle
2. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
3. Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat

ASGN is trading at $45.82 per share, or 9.5x forward P/E. Read our free research report to see why you should think twice about including ASGN in your portfolio.

AIG (AIG)

Rolling One-Year Beta: 0.49

With roots dating back to 1919 when it began as a small insurance agency in Shanghai, China, AIG (NYSE: AIG) is a global insurance organization that provides commercial and personal insurance solutions to businesses and individuals across more than 200 countries.

Why Do We Steer Clear of AIG?

1. Insurance policy sales contracted this cycle as net premiums earned decreased by 5.8% annually over the last five years
2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 1% annually
3. Flat book value per share over the last five years suggest it must find different ways to enhance shareholder value during this cycle

AIG’s stock price of $77.05 implies a valuation ratio of 1x forward P/B. If you’re considering AIG for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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 Growth Stocks for this month. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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