3 Low-Volatility Stocks We’re Skeptical Of

September 02, 2025 at 00:42 AM EDT

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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 that don’t make the cut and some better opportunities instead.

Yext (YEXT)

Rolling One-Year Beta: 0.55

Built to solve the problem of inconsistent business information scattered across the internet, Yext (NYSE: YEXT) provides a digital presence platform that helps businesses manage their information across websites, maps, apps, and search engines.

Why Does YEXT Fall Short?

Average ARR growth of 8.8% over the last year has disappointed, suggesting it’s had a hard time winning long-term deals and renewals
Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.7%
Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment

Yext is trading at $9.09 per share, or 2.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than YEXT.

Select Medical (SEM)

Rolling One-Year Beta: 0.77

With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE: SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.

Why Is SEM Risky?

Declining admissions over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
Incremental sales over the last five years were much less profitable as its earnings per share fell by 3.4% annually while its revenue grew

Select Medical’s stock price of $13.01 implies a valuation ratio of 11.1x forward P/E. To fully understand why you should be careful with SEM, check out our full research report (it’s free).

Maximus (MMS)

Rolling One-Year Beta: 0.35

With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE: MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.

Why Are We Wary of MMS?

Estimated sales growth of 1.9% for the next 12 months implies demand will slow from its two-year trend
11.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Underwhelming 12.3% return on capital reflects management’s difficulties in finding profitable growth opportunities

At $87.92 per share, Maximus trades at 13.4x forward P/E. If you’re considering MMS for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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3 Low-Volatility Stocks We’re Skeptical Of

Yext (YEXT)

Select Medical (SEM)

Maximus (MMS)

Stocks We Like More

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