3 Low-Volatility Stocks That Fall Short

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.

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.

Carriage Services (CSV)

Rolling One-Year Beta: 0.62

Established in 1991, Carriage Services (NYSE:CSV) is a provider of funeral and cemetery services in the United States.

Why Do We Steer Clear of CSV?

1. Muted 5.7% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
2. Poor free cash flow margin of 12.6% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Stagnant returns on capital show management has failed to improve the company’s business quality

Carriage Services’s stock price of $44.30 implies a valuation ratio of 13.2x forward P/E. If you’re considering CSV for your portfolio, see our FREE research report to learn more.

Graco (GGG)

Rolling One-Year Beta: 0.79

Founded in 1926, Graco (NYSE:GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.

Why Does GGG Fall Short?

1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
2. Earnings per share have dipped by 1.7% 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

Graco is trading at $93.42 per share, or 29.7x forward P/E. Dive into our free research report to see why there are better opportunities than GGG.

Stellar Bancorp (STEL)

Rolling One-Year Beta: 0.60

Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE:STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.

Why Should You Sell STEL?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.2% annually over the last two years
2. Net interest margin dropped by 35.6 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market
3. Sales were less profitable over the last two years as its earnings per share fell by 15.1% annually, worse than its revenue declines

At $38.73 per share, Stellar Bancorp trades at 1.1x forward P/B. To fully understand why you should be careful with STEL, check out our full research report (it’s free).

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 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.