3 Low-Volatility Stocks We Think Twice About

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 that don’t make the cut and some better opportunities instead.

Integer Holdings (ITGR)

Rolling One-Year Beta: 0.57

With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE:ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.

Why Does ITGR Give Us Pause?

1. Modest revenue base of $1.83 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
2. Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.9 percentage points

At $78.85 per share, Integer Holdings trades at 12.6x forward P/E. Dive into our free research report to see why there are better opportunities than ITGR.

Brookdale (BKD)

Rolling One-Year Beta: 0.18

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 Do We Think Twice About BKD?

1. Annual sales declines of 2.6% for the past five years show its products and services struggled to connect with the market during this cycle
2. Projected sales decline of 6.1% for the next 12 months points to a tough demand environment ahead
3. High net-debt-to-EBITDA ratio of 12× increases the risk of forced asset sales or dilutive financing if operational performance weakens

Brookdale is trading at $10.89 per share, or 16.6x 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).

Charles River Laboratories (CRL)

Rolling One-Year Beta: 0.21

Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories (NYSE:CRL) provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies.

Why Are We Cautious About CRL?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Projected sales for the next 12 months are flat and suggest demand will be subdued
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Charles River Laboratories’s stock price of $202.47 implies a valuation ratio of 19.3x forward P/E. If you’re considering CRL for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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 5 Growth Stocks for this month. 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.