3 Low-Volatility Stocks We Approach with Caution

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.

Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. That said, here are three low-volatility stocks to avoid and some better opportunities instead.

BlackLine (BL)

Rolling One-Year Beta: 0.85

Born from the vision to eliminate tedious manual spreadsheet work for accountants, BlackLine (NASDAQ:BL) provides cloud-based software that automates and streamlines financial close, intercompany accounting, and invoice-to-cash processes for accounting departments.

Why Does BL Fall Short?

1. Offerings struggled to generate meaningful interest as its average billings growth of 7.2% over the last year did not impress
2. Below-average net revenue retention rate of 103% suggests it has some trouble expanding within existing accounts
3. Static operating margin over the last year shows it couldn’t become more efficient

At $52.98 per share, BlackLine trades at 4.5x forward price-to-sales. To fully understand why you should be careful with BL, check out our full research report (it’s free).

Wendy's (WEN)

Rolling One-Year Beta: 0.51

Founded by Dave Thomas in 1969, Wendy’s (NASDAQ:WEN) is a renowned fast-food chain known for its fresh, never-frozen beef burgers, flavorful menu options, and commitment to quality.

Why Does WEN Worry Us?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. Projected sales are flat for the next 12 months, implying demand will slow from its six-year trend
3. 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Wendy's is trading at $8.37 per share, or 10x forward P/E. Check out our free in-depth research report to learn more about why WEN doesn’t pass our bar.

International Flavors & Fragrances (IFF)

Rolling One-Year Beta: 0.75

Responsible for the scents in your favorite perfumes and the flavors in your daily snacks, International Flavors & Fragrances (NYSE:IFF) creates and manufactures ingredients for food, beverages, personal care products, and pharmaceuticals used in countless consumer goods.

Why Is IFF Risky?

1. Products aren't resonating with the market as its revenue declined by 4.3% annually over the last three years
2. Poor expense management has led to operating margin losses
3. Negative returns on capital show that some of its growth strategies have backfired, and its decreasing returns suggest its historical profit centers are aging

International Flavors & Fragrances’s stock price of $71.68 implies a valuation ratio of 16.5x forward P/E. Read our free research report to see why you should think twice about including IFF in your portfolio.

Stocks We Like More

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 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.