Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.

Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here are three low-volatility stocks to steer clear of and a few better alternatives.

Revvity (RVTY)

Rolling One-Year Beta: 0.66

Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE: RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.

Why Is RVTY Risky?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 8.8 percentage points
3. Eroding returns on capital suggest its historical profit centers are aging

Revvity is trading at $100.90 per share, or 19.5x forward P/E. Read our free research report to see why you should think twice about including RVTY in your portfolio.

Azenta (AZTA)

Rolling One-Year Beta: 0.77

Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ: AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.

Why Do We Pass on AZTA?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.8% annually over the last five years
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. Negative returns on capital show that some of its growth strategies have backfired, and its shrinking returns suggest its past profit sources are losing steam

At $32.85 per share, Azenta trades at 44.7x forward P/E. Dive into our free research report to see why there are better opportunities than AZTA.

Selective Insurance Group (SIGI)

Rolling One-Year Beta: 0.55

Founded in 1926 during the early days of automobile insurance, Selective Insurance Group (NASDAQ: SIGI) is a property and casualty insurance company that sells commercial, personal, and excess and surplus lines insurance products through independent agents.

Why Are We Cautious About SIGI?

1. Expenses have increased as a percentage of revenue over the last two years as its combined ratio degraded by 7.9 percentage points
2. Earnings per share fell by 14.7% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
3. Low return on equity reflects management’s struggle to allocate funds effectively

Selective Insurance Group’s stock price of $85.06 implies a valuation ratio of 1.6x forward P/B. To fully understand why you should be careful with SIGI, check out our full research report (it’s free).

High-Quality Stocks for All Market Conditions

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 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