Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
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.
Amtech (ASYS)
Rolling One-Year Beta: 0.54
Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ: ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors.
Why Should You Dump ASYS?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 15.8% annually over the last two years
- Historical operating margin losses point to an inefficient cost structure
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 17.8% annually
Amtech’s stock price of $9.70 implies a valuation ratio of 74.5x forward P/E. Read our free research report to see why you should think twice about including ASYS in your portfolio.
Lithia (LAD)
Rolling One-Year Beta: 0.87
With a strong presence in the Western US, Lithia Motors (NYSE: LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.
Why Does LAD Fall Short?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Gross margin of 15.8% is below its competitors, leaving less money for marketing and promotions
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Lithia is trading at $301.49 per share, or 8.7x forward P/E. To fully understand why you should be careful with LAD, check out our full research report (it’s free for active Edge members).
Toll Brothers (TOL)
Rolling One-Year Beta: 0.88
Started by two brothers who started by building and selling just one home in Pennsylvania, today Toll Brothers (NYSE: TOL) is a luxury homebuilder across the United States.
Why Do We Think Twice About TOL?
- Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 6.3% declines over the past two years
- Earnings per share have dipped by 1.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Free cash flow margin dropped by 6.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
At $132 per share, Toll Brothers trades at 9.6x forward P/E. If you’re considering TOL for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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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