3 Low-Volatility Stocks That Fall Short

July 31, 2025 at 00:36 AM EDT

GIII Cover Image

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

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.

G-III (GIII)

Rolling One-Year Beta: 0.26

Founded as a small leather goods business, G-III (NASDAQ: GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.

Why Do We Think GIII Will Underperform?

Products and services fail to spark excitement with consumers, as seen in its flat sales over the last two years
Sales are projected to tank by 1.3% over the next 12 months as demand evaporates further
Underwhelming 8.3% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $23.65 per share, G-III trades at 6.2x forward P/E. Read our free research report to see why you should think twice about including GIII in your portfolio.

ICU Medical (ICUI)

Rolling One-Year Beta: 0.66

Founded in 1984 and named for its initial focus on intensive care units, ICU Medical (NASDAQ: ICUI) develops and manufactures medical products for infusion therapy, vascular access, and vital care applications used in hospitals and other healthcare settings.

Why Do We Steer Clear of ICUI?

Muted 2.2% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
Sales are projected to tank by 12.3% over the next 12 months as demand evaporates
Earnings per share fell by 1.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

ICU Medical is trading at $125.47 per share, or 17.4x forward P/E. Dive into our free research report to see why there are better opportunities than ICUI.

Universal Health Services (UHS)

Rolling One-Year Beta: 0.68

With a network spanning 39 states and three countries, Universal Health Services (NYSE: UHS) operates acute care hospitals and behavioral health facilities across the United States, United Kingdom, and Puerto Rico.

Why Are We Wary of UHS?

Poor comparable store sales performance over the past two years indicates it’s having trouble bringing new patients into its facilities
Efficiency has decreased over the last five years as its adjusted operating margin fell by 1.3 percentage points
Poor free cash flow margin of 4.1% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Universal Health Services’s stock price of $165.44 implies a valuation ratio of 8.1x forward P/E. To fully understand why you should be careful with UHS, check out our full research report (it’s free).

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3 Low-Volatility Stocks That Fall Short

G-III (GIII)

ICU Medical (ICUI)

Universal Health Services (UHS)

High-Quality Stocks for All Market Conditions

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