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. Keeping that in mind, here are three low-volatility stocks to avoid and some better opportunities instead.

WideOpenWest (WOW)

Rolling One-Year Beta: 0.65

Initially started in Denver as a cable television provider, WideOpenWest (NYSE: WOW) provides high-speed internet, cable, and telephone services to the Midwest and Southeast regions of the U.S.

Why Do We Avoid WOW?

1. Demand for its offerings was relatively low as its number of subscribers has underwhelmed
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

WideOpenWest is trading at $3.41 per share, or 1x forward EV-to-EBITDA. If you’re considering WOW for your portfolio, see our FREE research report to learn more.

Bristol-Myers Squibb (BMY)

Rolling One-Year Beta: 0.07

With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE: BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.

Why Are We Wary of BMY?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.9% over the last two years was below our standards for the healthcare sector
2. Sales are projected to tank by 4.4% over the next 12 months as demand evaporates
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Bristol-Myers Squibb’s stock price of $46.98 implies a valuation ratio of 7.1x forward P/E. Dive into our free research report to see why there are better opportunities than BMY.

Selective Insurance Group (SIGI)

Rolling One-Year Beta: 0.44

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 Is SIGI Not Exciting?

1. Estimated sales decline of 60.9% for the next 12 months implies a challenging demand environment
2. Operational productivity has decreased over the last four years as its combined ratio worsened by 6.6 percentage points
3. Performance over the past two years shows its incremental sales were less profitable, as its 11.7% annual earnings per share growth trailed its revenue gains

At $81.02 per share, Selective Insurance Group trades at 1.5x forward P/B. Check out our free in-depth research report to learn more about why SIGI doesn’t pass our bar.

Stocks We Like More

Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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-micro-cap company Kadant (+351% 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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