Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
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 steer clear of and a few better alternatives.
Schneider (SNDR)
Rolling One-Year Beta: 0.72
Employing thousands of drivers across the country to make deliveries, Schneider (NYSE:SNDR) makes full truckload and intermodal deliveries regionally and across borders.
Why Is SNDR Risky?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 10.2% annually while its revenue grew
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $21.76 per share, Schneider trades at 22.7x forward P/E. Dive into our free research report to see why there are better opportunities than SNDR.
Merit Medical Systems (MMSI)
Rolling One-Year Beta: 0.78
Founded in 1987 and now offering over 1,700 patented products across global markets, Merit Medical Systems (NASDAQ:MMSI) manufactures and markets specialized medical devices used in minimally invasive procedures for cardiology, radiology, oncology, critical care, and endoscopy.
Why Do We Think Twice About MMSI?
- Modest revenue base of $1.48 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Underwhelming 4.9% return on capital reflects management’s difficulties in finding profitable growth opportunities
Merit Medical Systems is trading at $86.85 per share, or 22.3x forward P/E. If you’re considering MMSI for your portfolio, see our FREE research report to learn more.
Hartford (HIG)
Rolling One-Year Beta: 0.58
Recognizable by its iconic stag logo that dates back to 1810, The Hartford (NYSE:HIG) provides property and casualty insurance, group benefits, and investment products to individuals and businesses across the United States.
Why Are We Cautious About HIG?
- Outsized scale creates growth headwinds as its 6.1% annualized net premiums earned increases over the last five years underperformed other financial institutions
- Estimated sales decline of 25.7% for the next 12 months implies a challenging demand environment
- Annual book value per share growth of 5.8% over the last five years lagged behind its insurance peers as its large balance sheet made it difficult to generate incremental capital growth
Hartford’s stock price of $137.50 implies a valuation ratio of 2.1x forward P/B. To fully understand why you should be careful with HIG, check out our full research report (it’s free for active Edge members).
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 6 Stocks for this week. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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