3 Low-Volatility Stocks Facing Headwinds

June 17, 2025 at 00:38 AM EDT

MKC Cover Image

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.

McCormick (MKC)

Rolling One-Year Beta: -0.03

The classic red Heinz ketchup bottle’s competitor, McCormick (NYSE: MKC) sells food-flavoring products like condiments, spices, and seasoning mixes.

Why Are We Hesitant About MKC?

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
Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.1%
Capital intensity has ramped up over the last year as its free cash flow margin decreased by 5.4 percentage points

At $73.87 per share, McCormick trades at 23.7x forward P/E. Read our free research report to see why you should think twice about including MKC in your portfolio.

Solventum (SOLV)

Rolling One-Year Beta: 0.46

Founded in 1985, Solventum (NYSE: SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.

Why Are We Wary of SOLV?

Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
Costs have risen faster than its revenue over the last two years, causing its adjusted operating margin to decline by 4.2 percentage points
Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 21.9% annually

Solventum is trading at $74.45 per share, or 13.2x forward P/E. If you’re considering SOLV for your portfolio, see our FREE research report to learn more.

Brookline Bancorp (BRKL)

Rolling One-Year Beta: 0.75

Founded in 1871 and operating through three subsidiary banks across three states, Brookline Bancorp (NASDAQ: BRKL) is a multi-bank holding company that provides commercial, business, and retail banking services to small and mid-sized businesses and individuals in New England and New York.

Why Does BRKL Give Us Pause?

Muted 5.7% annual net interest income growth over the last four years shows its demand lagged behind its bank peers
Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 47.7 basis points (100 basis points = 1 percentage point)
Earnings per share fell by 20.9% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable

Brookline Bancorp’s stock price of $10.69 implies a valuation ratio of 0.5x forward P/B. Dive into our free research report to see why there are better opportunities than BRKL.

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3 Low-Volatility Stocks Facing Headwinds

McCormick (MKC)

Solventum (SOLV)

Brookline Bancorp (BRKL)

Stocks We Like More

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