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. Keeping that in mind, here are three low-volatility stocks to avoid and some better opportunities instead.
Clorox (CLX)
Rolling One-Year Beta: 0.19
Founded in 1913 with bleach as the sole product offering, Clorox (NYSE:CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.
Why Is CLX Not Exciting?
- Sales were flat over the last three years, indicating it’s failed to expand its business
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Forecasted revenue decline of 8.2% for the upcoming 12 months implies demand will fall off a cliff
At $120.38 per share, Clorox trades at 18.9x forward P/E. To fully understand why you should be careful with CLX, check out our full research report (it’s free).
Hertz (HTZ)
Rolling One-Year Beta: 0.21
Started with a dozen Model T Fords, Hertz (NASDAQ:HTZ) is a global car rental company providing vehicle rental services to leisure and business travelers.
Why Do We Think HTZ Will Underperform?
- Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Hertz’s stock price of $5.82 implies a valuation ratio of 4.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including HTZ in your portfolio.
AvidXchange (AVDX)
Rolling One-Year Beta: 0.80
Born from the frustration of paper-based accounting processes in the early 2000s, AvidXchange (NASDAQ:AVDX) provides accounts payable automation software and payment solutions that help middle-market businesses digitize and streamline their invoice processing and payments.
Why Does AVDX Worry Us?
- Push for growth has led to negative returns on capital, signaling value destruction
AvidXchange is trading at $9.91 per share, or 36x forward P/E. If you’re considering AVDX for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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-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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