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 to avoid and some better opportunities instead.
The New York Times (NYT)
Rolling One-Year Beta: 0.57
Founded in 1851, The New York Times (NYSE: NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
Why Does NYT Fall Short?
- Performance surrounding its subscribers has lagged its peers
- Projected sales growth of 6.9% for the next 12 months suggests sluggish demand
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
The New York Times’s stock price of $54.99 implies a valuation ratio of 23x forward P/E. Check out our free in-depth research report to learn more about why NYT doesn’t pass our bar.
G-III (GIII)
Rolling One-Year Beta: 0.61
Founded as a small leather goods business, G-III (NASDAQ: GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.
Why Should You Sell GIII?
- Products and services aren't resonating with the market as its revenue declined by 1.2% annually over the last two years
- Sales are projected to tank by 3.9% over the next 12 months as its demand continues evaporating
- Low returns on capital reflect management’s struggle to allocate funds effectively
G-III is trading at $27.07 per share, or 12x forward P/E. Read our free research report to see why you should think twice about including GIII in your portfolio.
Old Republic International (ORI)
Rolling One-Year Beta: 0.56
Founded during the Roaring Twenties in 1923 and weathering nearly a century of economic cycles, Old Republic International (NYSE: ORI) is a diversified insurance holding company that provides property, liability, title, and mortgage guaranty insurance through its various subsidiaries.
Why Are We Wary of ORI?
- 5.2% annualized net premiums earned growth over the last five years lagged behind its insurance peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 9.5% annually
- Projected book value per share is flat for the next 12 months, implying profitability will slow from its two-year trend
At $43.30 per share, Old Republic International trades at 1.7x forward P/B. Dive into our free research report to see why there are better opportunities than ORI.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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