3 Low-Volatility Stocks We Find Risky

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. That said, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.

Masco (MAS)

Rolling One-Year Beta: 0.92

Headquartered just outside of Detroit, MI, Masco (NYSE:MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.

Why Do We Avoid MAS?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Anticipated sales growth of 2% for the next year implies demand will be shaky
3. Eroding returns on capital suggest its historical profit centers are aging

Masco is trading at $66.28 per share, or 15.5x forward P/E. Dive into our free research report to see why there are better opportunities than MAS.

Butterfield Bank (NTB)

Rolling One-Year Beta: 0.58

Founded in 1784 as one of the oldest banks in the Western Hemisphere, Butterfield Bank (NYSE:NTB) provides banking, wealth management, and trust services to individuals and businesses in select offshore financial centers including Bermuda, Cayman Islands, and the Channel Islands.

Why Are We Cautious About NTB?

1. Muted 1.6% annual revenue growth over the last two years shows its demand lagged behind its banking peers
2. Forecasted net interest income decline of 43.1% for the upcoming 12 months implies demand will fall off a cliff
3. Inferior net interest margin of 2.7% means it must compensate for lower profitability through increased loan originations

At $49.95 per share, Butterfield Bank trades at 1.8x forward P/B. Read our free research report to see why you should think twice about including NTB in your portfolio.

Northwest Bancshares (NWBI)

Rolling One-Year Beta: 0.68

Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ:NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.

Why Do We Think NWBI Will Underperform?

1. Muted 5.7% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
2. Performance over the past two years shows its incremental sales were less profitable, as its 2.5% annual earnings per share growth trailed its revenue gains
3. Capital trends were unexciting over the last five years as its 1% annual tangible book value per share growth was below the typical banking firm

Northwest Bancshares’s stock price of $12.20 implies a valuation ratio of 0.9x forward P/B. If you’re considering NWBI for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our 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 244% over the last five years (as of June 30, 2025).

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