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 steer clear of and a few better alternatives.
TEGNA (TGNA)
Rolling One-Year Beta: 0.53
Spun out of Gannett in 2015, TEGNA (NYSE:TGNA) is a media company operating a network of television stations and digital platforms, focusing on local news and community content.
Why Do We Pass on TGNA?
- Annual revenue growth of 1.3% over the last five years was below our standards for the consumer discretionary sector
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 7.9% annually
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $18.85 per share, TEGNA trades at 8.1x forward P/E. Dive into our free research report to see why there are better opportunities than TGNA.
News Corp (NWSA)
Rolling One-Year Beta: 0.84
Established in 2013 after a restructuring, News Corp (NASDAQ:NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
Why Do We Avoid NWSA?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 8.1% for the last two years
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
News Corp’s stock price of $26.60 implies a valuation ratio of 25.3x forward P/E. To fully understand why you should be careful with NWSA, check out our full research report (it’s free).
Privia Health (PRVA)
Rolling One-Year Beta: 0.82
Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ:PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.
Why Does PRVA Worry Us?
- Modest revenue base of $2.04 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Push for growth has led to negative returns on capital, signaling value destruction
Privia Health is trading at $22.78 per share, or 24.3x forward P/E. Check out our free in-depth research report to learn more about why PRVA 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.