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.

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 to avoid and some better opportunities instead.

Box (BOX)

Rolling One-Year Beta: 0.57

Known as the "Content Cloud" for managing the 90% of business data that exists as unstructured files and documents, Box (NYSE:BOX) provides a cloud-based platform that enables organizations to securely manage, share, and collaborate on their content from anywhere on any device.

Why Do We Think Twice About BOX?

1. Offerings struggled to generate meaningful interest as its average billings growth of 11.9% over the last year did not impress
2. Estimated sales growth of 7.7% for the next 12 months is soft and implies weaker demand
3. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 1.6 percentage points

At $26.20 per share, Box trades at 3.2x forward price-to-sales. To fully understand why you should be careful with BOX, check out our full research report (it’s free).

Builders FirstSource (BLDR)

Rolling One-Year Beta: 0.93

Headquartered in Irving, TX, Builders FirstSource (NYSE:BLDR) is a construction materials manufacturer that offers a variety of lumber and lumber-related building products.

Why Does BLDR Worry Us?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.9% annually over the last two years
2. Earnings per share have dipped by 24.8% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Builders FirstSource is trading at $117.25 per share, or 19.7x forward P/E. Check out our free in-depth research report to learn more about why BLDR doesn’t pass our bar.

Addus HomeCare (ADUS)

Rolling One-Year Beta: 0.21

Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.

Why Are We Cautious About ADUS?

1. Modest revenue base of $1.35 billion gives it less fixed cost leverage and fewer distribution channels than larger companies

Addus HomeCare’s stock price of $106.96 implies a valuation ratio of 16.5x forward P/E. Dive into our free research report to see why there are better opportunities than ADUS.

High-Quality Stocks for All Market Conditions

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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.