Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.
Beyond Meat (BYND)
Rolling One-Year Beta: 0.43
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.
Why Should You Dump BYND?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Cash-burning history makes us doubt the long-term viability of its business model
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Beyond Meat’s stock price of $3.45 implies a valuation ratio of 0.9x forward price-to-sales. Read our free research report to see why you should think twice about including BYND in your portfolio.
Illinois Tool Works (ITW)
Rolling One-Year Beta: 0.71
Founded by Byron Smith, an investor who held over 100 patents, Illinois Tool Works (NYSE: ITW) manufactures engineered components and specialized equipment for numerous industries.
Why Are We Cautious About ITW?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.3%
- Free cash flow margin shrank by 1.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $247.24 per share, Illinois Tool Works trades at 23.7x forward P/E. Dive into our free research report to see why there are better opportunities than ITW.
NBT Bancorp (NBTB)
Rolling One-Year Beta: 0.90
Tracing its roots back to 1856 when it first opened its doors in Norwich, New York, NBT Bancorp (NASDAQ: NBTB) is a community-oriented financial institution providing banking, wealth management, and insurance services to individuals and businesses across the northeastern United States.
Why Is NBTB Not Exciting?
- Muted 6.7% annual net interest income growth over the last four years shows its demand lagged behind its bank peers
- Annual earnings per share growth of 1.4% underperformed its revenue over the last five years, showing its incremental sales were less profitable
- Muted 7.2% annual tangible book value per share growth over the last two years shows its capital generation lagged behind its bank peers
NBT Bancorp is trading at $41.55 per share, or 1.2x forward P/B. To fully understand why you should be careful with NBTB, check out our full research report (it’s free).
Stocks We Like More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today