Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here are three low-volatility stocks to steer clear of and a few better alternatives.
Etsy (ETSY)
Rolling One-Year Beta: 0.87
Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NYSE:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Why Does ETSY Worry Us?
- Market opportunities are plateauing as its active buyers were flat over the last two years
- Estimated sales growth of 2.8% for the next 12 months implies demand will slow from its three-year trend
- Earnings per share fell by 1.1% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable
Etsy is trading at $45.78 per share, or 10.6x forward EV/EBITDA. To fully understand why you should be careful with ETSY, check out our full research report (it’s free).
GameStop (GME)
Rolling One-Year Beta: 0.42
Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE:GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise.
Why Do We Steer Clear of GME?
- GameStop’s brick-and-mortar engine keeps stalling as gamers migrate to digital downloads, and management is closing more outlets after shuttering hundreds of stores last year
- The share price remains an unpredictable meme-stock roller-coaster, and the purchase of thousands of Bitcoins have fueled huge swings
- On the bright side, the company has a large cash pile that gives CEO Ryan Cohen room to buy more Bitcoin or fund its collectibles and trading-card push
At $23.71 per share, GameStop trades at 27.7x forward P/E. Dive into our free research report to see why there are better opportunities than GME.
Greenbrier (GBX)
Rolling One-Year Beta: 0.69
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.
Why Are We Wary of GBX?
- Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Gross margin of 14% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Negative free cash flow raises questions about the return timeline for its investments
Greenbrier’s stock price of $57.10 implies a valuation ratio of 14.5x forward P/E. Check out our free in-depth research report to learn more about why GBX doesn’t pass our bar.
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 Kadant (+351% five-year return). Find your next big winner with StockStory today.