3 Low-Volatility Stocks in the Doghouse

July 16, 2025 at 00:35 AM EDT

SPB 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.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here are three low-volatility stocks to steer clear of and a few better alternatives.

Spectrum Brands (SPB)

Rolling One-Year Beta: 0.87

A leader in multiple consumer product categories, Spectrum Brands (NYSE: SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.

Why Do We Avoid SPB?

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
Projected sales decline of 4.1% over the next 12 months indicates demand will continue deteriorating
Cash burn makes us question whether it can achieve sustainable long-term growth

Spectrum Brands’s stock price of $54.31 implies a valuation ratio of 10.2x forward P/E. Read our free research report to see why you should think twice about including SPB in your portfolio.

Smith & Wesson (SWBI)

Rolling One-Year Beta: 0.52

With a history dating back to 1852, Smith & Wesson (NASDAQ: SWBI) is a firearms manufacturer known for its handguns and rifles.

Why Should You Dump SWBI?

Products and services aren't resonating with the market as its revenue declined by 2.2% annually over the last five years
Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

At $8.22 per share, Smith & Wesson trades at 18.1x forward P/E. Check out our free in-depth research report to learn more about why SWBI doesn’t pass our bar.

Enphase (ENPH)

Rolling One-Year Beta: 0.51

The first company to successfully commercialize the solar micro-inverter, Enphase (NASDAQ: ENPH) manufactures software-driven home energy products.

Why Do We Think Twice About ENPH?

Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 13.6 percentage points
Earnings per share have contracted by 27.9% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance

Enphase is trading at $40.29 per share, or 12x forward P/E. Dive into our free research report to see why there are better opportunities than ENPH.

Stocks We Like More

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3 Low-Volatility Stocks in the Doghouse

Spectrum Brands (SPB)

Smith & Wesson (SWBI)

Enphase (ENPH)

Stocks We Like More

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