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. Keeping that in mind, here are three low-volatility stocks to avoid and some better opportunities instead.
Box (BOX)
Rolling One-Year Beta: 0.57
Known as the "Content Cloud" for managing the 90% of business data that exists as unstructured files and documents, Box (NYSE:BOX) provides a cloud-based platform that enables organizations to securely manage, share, and collaborate on their content from anywhere on any device.
Why Do We Think Twice About BOX?
- Offerings struggled to generate meaningful interest as its average billings growth of 11.9% over the last year did not impress
- Estimated sales growth of 7.7% for the next 12 months is soft and implies weaker demand
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 1.6 percentage points
At $26.20 per share, Box trades at 3.2x forward price-to-sales. To fully understand why you should be careful with BOX, check out our full research report (it’s free).
Builders FirstSource (BLDR)
Rolling One-Year Beta: 0.93
Headquartered in Irving, TX, Builders FirstSource (NYSE:BLDR) is a construction materials manufacturer that offers a variety of lumber and lumber-related building products.
Why Does BLDR Worry Us?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.9% annually over the last two years
- Earnings per share have dipped by 24.8% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Diminishing returns on capital suggest its earlier profit pools are drying up
Builders FirstSource is trading at $117.25 per share, or 19.7x forward P/E. Check out our free in-depth research report to learn more about why BLDR doesn’t pass our bar.
Addus HomeCare (ADUS)
Rolling One-Year Beta: 0.21
Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.
Why Are We Cautious About ADUS?
- Modest revenue base of $1.35 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
Addus HomeCare’s stock price of $106.96 implies a valuation ratio of 16.5x forward P/E. Dive into our free research report to see why there are better opportunities than ADUS.
High-Quality Stocks for All Market Conditions
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 5 Growth Stocks for this month. 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.