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.

News Corp (NWSA)

Rolling One-Year Beta: 0.80

Established in 2013 after a restructuring, News Corp (NASDAQ: NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.

Why Do We Avoid NWSA?

1. Annual sales declines of 2.5% for the past five years show its products and services struggled to connect with the market
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.5%
3. Low returns on capital reflect management’s struggle to allocate funds effectively

News Corp is trading at $29.43 per share, or 32.9x forward P/E. Read our free research report to see why you should think twice about including NWSA in your portfolio.

Installed Building Products (IBP)

Rolling One-Year Beta: 0.89

Founded in 1977, Installed Building Products (NYSE: IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction.

Why Does IBP Give Us Pause?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Projected sales decline of 3.1% for the next 12 months points to a tough demand environment ahead
3. Earnings per share lagged its peers over the last two years as they only grew by 5.5% annually

Installed Building Products’s stock price of $201 implies a valuation ratio of 18.9x forward P/E. Dive into our free research report to see why there are better opportunities than IBP.

Connection (CNXN)

Rolling One-Year Beta: 0.86

Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ: CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems.

Why Should You Dump CNXN?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. Earnings per share were flat over the last five years and fell short of the peer group average
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

At $65.17 per share, Connection trades at 18.7x forward P/E. If you’re considering CNXN for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out 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 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 Exlservice (+354% 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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