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.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here are three low-volatility stocks to avoid and some better opportunities instead.

Altice (ATUS)

Rolling One-Year Beta: 0.63

Based in Long Island City, Altice USA (NYSE: ATUS) is a telecommunications company offering cable, internet, telephone, and television services across the United States.

Why Do We Steer Clear of ATUS?

1. Number of broadband subscribers has disappointed over the past two years, indicating weak demand for its offerings
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Altice is trading at $2.82 per share, or 0.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including ATUS in your portfolio.

Hasbro (HAS)

Rolling One-Year Beta: 0.93

Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.

Why Should You Dump HAS?

1. Annual sales declines of 3.5% for the past five years show its products and services struggled to connect with the market
2. Poor expense management has led to operating margin losses
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Hasbro’s stock price of $77.41 implies a valuation ratio of 18.4x forward P/E. To fully understand why you should be careful with HAS, check out our full research report (it’s free).

Acadia Healthcare (ACHC)

Rolling One-Year Beta: 0.76

With a network of over 250 facilities serving patients in 38 states and Puerto Rico, Acadia Healthcare (NASDAQ: ACHC) operates facilities providing mental health and substance use disorder treatment services across the United States.

Why Does ACHC Worry Us?

1. Annual revenue growth of 2% over the last five years was below our standards for the healthcare sector
2. Disappointing admissions over the past two years imply it may need to invest in improvements to get back on track
3. Free cash flow margin dropped by 30 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $22.27 per share, Acadia Healthcare trades at 8.4x forward P/E. Dive into our free research report to see why there are better opportunities than ACHC.

Stocks We Like More

When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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