3 Low-Volatility Stocks We Find Risky

July 18, 2025 at 00:43 AM EDT

COLM 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. Keeping that in mind, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.

Columbia Sportswear (COLM)

Rolling One-Year Beta: 0.37

Originally founded as a hat store in 1938, Columbia Sportswear (NASDAQ: COLM) is a manufacturer of outerwear, sportswear, and footwear designed for outdoor enthusiasts.

Why Do We Pass on COLM?

Weak constant currency growth over the past two years indicates challenges in maintaining its market share
Sales are projected to be flat over the next 12 months and imply weak demand
Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Columbia Sportswear’s stock price of $59.91 implies a valuation ratio of 16.8x forward P/E. If you’re considering COLM for your portfolio, see our FREE research report to learn more.

FTI Consulting (FCN)

Rolling One-Year Beta: 0.44

With a team of experts deployed across 30+ countries to tackle complex business challenges, FTI Consulting (NYSE: FCN) is a global business advisory firm that helps organizations manage change, mitigate risk, and resolve disputes across financial, legal, operational, and regulatory matters.

Why Are We Cautious About FCN?

Estimated sales growth of 1.3% for the next 12 months implies demand will slow from its two-year trend
Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 2.8 percentage points
Free cash flow margin dropped by 5.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up

FTI Consulting is trading at $166.22 per share, or 20.6x forward P/E. Check out our free in-depth research report to learn more about why FCN doesn’t pass our bar.

Northwest Bancshares (NWBI)

Rolling One-Year Beta: 0.68

Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ: NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.

Why Do We Avoid NWBI?

Muted 3.2% annual net interest income growth over the last four years shows its demand lagged behind its bank peers
Capital trends were unexciting over the last five years as its 1.4% annual tangible book value per share growth was below the typical bank company
Forecasted tangible book value per share decline of 7.1% for the upcoming 12 months implies profitability will deteriorate significantly

At $13.50 per share, Northwest Bancshares trades at 1x forward P/B. Dive into our free research report to see why there are better opportunities than NWBI.

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3 Low-Volatility Stocks We Find Risky

Columbia Sportswear (COLM)

FTI Consulting (FCN)

Northwest Bancshares (NWBI)

High-Quality Stocks for All Market Conditions

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