3 Low-Volatility Stocks We're Skeptical Of

Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here are three low-volatility stocks to steer clear of and a few better alternatives.

Brookdale (BKD)

Rolling One-Year Beta: 0.25

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE:BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Why Is BKD Not Exciting?

1. Sales tumbled by 3.8% annually over the last five years, showing market trends are working against its favor during this cycle
2. Low returns on capital reflect management’s struggle to allocate funds effectively

Brookdale is trading at $8.06 per share, or 4.2x forward EV-to-EBITDA. To fully understand why you should be careful with BKD, check out our full research report (it’s free for active Edge members).

Assurant (AIZ)

Rolling One-Year Beta: 0.75

With roots dating back to 1892 when it was founded by a Civil War veteran, Assurant (NYSE:AIZ) provides specialized insurance products and services that protect major consumer purchases like mobile devices, vehicles, homes, and appliances.

Why Does AIZ Fall Short?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 4.4% for the last five years
2. Outsized scale creates growth headwinds as its 4.7% annualized net premiums earned increases over the last five years underperformed other financial institutions
3. Large asset base makes it harder to grow book value per share quickly, and its annual book value per share growth of 1.4% over the last five years was below our standards for the insurance sector

At $220 per share, Assurant trades at 2x forward P/B. Check out our free in-depth research report to learn more about why AIZ doesn’t pass our bar.

WaFd Bank (WAFD)

Rolling One-Year Beta: 0.77

Founded in 1917 and rebranded from Washington Federal in 2023, WaFd (NASDAQ:WAFD) is a bank holding company that provides lending, deposit services, and insurance through its Washington Federal Bank subsidiary across eight western states.

Why Are We Wary of WAFD?

1. 7% annual net interest income growth over the last five years was slower than its banking peers
2. Net interest margin shrank by 102.2 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
3. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable

WaFd Bank’s stock price of $29.97 implies a valuation ratio of 0.9x forward P/B. Read our free research report to see why you should think twice about including WAFD in your portfolio.

Stocks We Like More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our 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.

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