3 Low-Volatility Stocks We Steer Clear Of

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 steer clear of and a few better alternatives.

Heartland Express (HTLD)

Rolling One-Year Beta: 0.83

Founded by the son of a trucker, Heartland Express (NASDAQ:HTLD) offers full-truckload deliveries across the United States and Mexico.

Why Do We Steer Clear of HTLD?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 14.2% annually over the last two years
2. Free cash flow margin shrank by 12.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Heartland Express is trading at $7.63 per share, or 8.6x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including HTLD in your portfolio.

Fiserv (FI)

Rolling One-Year Beta: 0.32

Powering over 1 billion accounts and processing more than 12,000 financial transactions per second globally, Fiserv (NYSE:FI) provides payment processing and financial technology solutions that enable merchants, banks, and credit unions to accept payments and manage financial transactions.

Why Does FI Give Us Pause?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 5.2% over the last two years was below our standards for the financials sector
2. Below-average return on equity indicates management struggled to find compelling investment opportunities

Fiserv’s stock price of $63.69 implies a valuation ratio of 8x forward P/E. To fully understand why you should be careful with FI, check out our full research report (it’s free for active Edge members).

Simmons First National (SFNC)

Rolling One-Year Beta: 0.92

With roots dating back to 1903 and a presence across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas, Simmons First National (NASDAQ:SFNC) is a regional bank holding company that provides banking and financial services to individuals and businesses.

Why Do We Avoid SFNC?

1. Annual net interest income growth of 1.5% over the last five years was below our standards for the banking sector
2. Earnings per share fell by 9% annually over the last five years while its revenue was flat, showing each sale was less profitable
3. Tangible book value per share tumbled by 2.9% annually over the last five years, showing banking sector trends are working against its favor during this cycle

At $18.06 per share, Simmons First National trades at 0.8x forward P/B. If you’re considering SFNC for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum 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 Exlservice (+354% 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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