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.
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 avoid and some better opportunities instead.
Planet Fitness (PLNT)
Rolling One-Year Beta: 0.41
Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE:PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.
Why Do We Pass on PLNT?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Free cash flow margin is forecasted to grow by 1.6 percentage points in the coming year, potentially giving the company more chips to play with
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $106.86 per share, Planet Fitness trades at 31.3x forward P/E. Dive into our free research report to see why there are better opportunities than PLNT.
Tennant (TNC)
Rolling One-Year Beta: 0.83
As the world’s largest manufacturer of autonomous mobile robots, Tennant (NYSE:TNC) designs, manufactures, and sells cleaning products to various sectors.
Why Do We Think TNC Will Underperform?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.7%
- Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 4.3% annually
Tennant is trading at $78.56 per share, or 11.9x forward P/E. To fully understand why you should be careful with TNC, check out our full research report (it’s free).
Hilltop Holdings (HTH)
Rolling One-Year Beta: 0.60
Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings (NYSE:HTH) is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.
Why Are We Out on HTH?
- Loans are facing end-market challenges during this cycle, as seen in its flat net interest income over the last five years
- Overall productivity is expected to decrease over the next year as Wall Street thinks its efficiency ratio will degrade by 32.9 percentage points
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
Hilltop Holdings’s stock price of $34.95 implies a valuation ratio of 1x forward P/B. Check out our free in-depth research report to learn more about why HTH doesn’t pass our bar.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.