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.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. That said, here are three low-volatility stocks to avoid and some better opportunities instead.
Carter's (CRI)
Rolling One-Year Beta: 0.88
Rumored to sell more than 10 products for every child born in the United States, Carter's (NYSE: CRI) is an American designer and marketer of children's apparel.
Why Is CRI Risky?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience
- Poor free cash flow margin of 6.5% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Carter's is trading at $36.80 per share, or 14.4x forward P/E. Dive into our free research report to see why there are better opportunities than CRI.
ICF International (ICFI)
Rolling One-Year Beta: 0.55
Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ: ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors.
Why Do We Pass on ICFI?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 2.9% declines over the past two years
- Estimated sales decline of 3% for the next 12 months implies an even more challenging demand environment
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 6% annually
ICF International’s stock price of $87.13 implies a valuation ratio of 13x forward P/E. To fully understand why you should be careful with ICFI, check out our full research report (it’s free).
AT&T (T)
Rolling One-Year Beta: 0.27
Founded by Alexander Graham Bell, AT&T (NYSE: T) is a multinational telecomm conglomerate providing a range of communications and internet services.
Why Do We Avoid T?
- Annual sales declines of 4.3% for the past five years show its products and services struggled to connect with the market
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 7.9% annually, worse than its revenue
- Free cash flow margin is forecasted to shrink by 1.3 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
At $27.12 per share, AT&T trades at 11.9x forward P/E. Check out our free in-depth research report to learn more about why T doesn’t pass our bar.
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
