Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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.
Comcast (CMCSA)
Rolling One-Year Beta: 0.63
Formerly known as American Cable Systems, Comcast (NASDAQ:CMCSA) is a multinational telecommunications company offering a wide range of services.
Why Do We Think CMCSA Will Underperform?
- Demand for its offerings was relatively low as its number of domestic broadband customers has underwhelmed
- Projected 3.1 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Returns on capital are increasing as management makes relatively better investment decisions
At $27.47 per share, Comcast trades at 6.7x forward P/E. Check out our free in-depth research report to learn more about why CMCSA doesn’t pass our bar.
Regeneron (REGN)
Rolling One-Year Beta: 0.71
Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ:REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders.
Why Is REGN Not Exciting?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 4.3% for the last two years
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 23.8 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
Regeneron’s stock price of $725.97 implies a valuation ratio of 15.4x forward P/E. To fully understand why you should be careful with REGN, check out our full research report (it’s free for active Edge members).
Korn Ferry (KFY)
Rolling One-Year Beta: 0.81
With clients including 97% of the S&P 100 and operations in 103 offices across 51 countries, Korn Ferry (NYSE:KFY) is a global consulting firm that helps organizations design optimal structures, recruit talent, develop leaders, and create effective compensation strategies.
Why Does KFY Worry Us?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 3.3 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Korn Ferry is trading at $67.44 per share, or 12.5x forward P/E. Read our free research report to see why you should think twice about including KFY in your portfolio.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 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-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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