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.

Yelp (YELP)

Rolling One-Year Beta: 0.40

Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews.

Why Is YELP Not Exciting?

1. May need to improve its platform and marketing strategy as its 7.4% average growth in paying advertising accounts underwhelmed
2. Lackluster growth in its average revenue per user coupled with its weaker engagement trends led to sluggish demand over the last two years
3. Estimated sales growth of 1.1% for the next 12 months implies demand will slow from its three-year trend

Yelp’s stock price of $28.04 implies a valuation ratio of 4.2x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than YELP.

Monarch (MCRI)

Rolling One-Year Beta: 0.66

Established in 1993, Monarch (NASDAQ:MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.

Why Do We Think MCRI Will Underperform?

1. Annual revenue growth of 4.5% over the last two years was below our standards for the consumer discretionary sector
2. Below-average returns on capital indicate management struggled to find compelling investment opportunities
3. Rising returns on capital show management is making relatively better investments

At $89.22 per share, Monarch trades at 15.7x forward P/E. To fully understand why you should be careful with MCRI, check out our full research report (it’s free).

Gartner (IT)

Rolling One-Year Beta: 0.82

With over 2,500 research experts guiding organizations through complex technology landscapes, Gartner (NYSE:IT) provides research, advisory services, and conferences that help executives make better decisions about technology and other business priorities.

Why Does IT Worry Us?

1. Estimated sales growth of 2.7% for the next 12 months implies demand will slow from its two-year trend
2. Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 4.4 percentage points
3. 9.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Gartner is trading at $222.65 per share, or 17.5x forward P/E. If you’re considering IT for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 6 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).

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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.