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 to steer clear of and a few better alternatives.
Hain Celestial (HAIN)
Rolling One-Year Beta: 0.28
Sold in over 75 countries around the world, Hain Celestial (NASDAQ: HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.
Why Do We Avoid HAIN?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Sales are projected to tank by 5.6% over the next 12 months as its demand continues evaporating
- Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 43.5% annually, worse than its revenue
Hain Celestial is trading at $1.61 per share, or 3.8x forward P/E. To fully understand why you should be careful with HAIN, check out our full research report (it’s free).
Waters Corporation (WAT)
Rolling One-Year Beta: 0.52
Founded in 1958 and pioneering innovations in laboratory analysis for over six decades, Waters (NYSE: WAT) develops and manufactures analytical instruments, software, and consumables for liquid chromatography, mass spectrometry, and thermal analysis used in scientific research and quality testing.
Why Are We Hesitant About WAT?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Eroding returns on capital suggest its historical profit centers are aging
Waters Corporation’s stock price of $305.01 implies a valuation ratio of 23x forward P/E. If you’re considering WAT for your portfolio, see our FREE research report to learn more.
Brink's (BCO)
Rolling One-Year Beta: 0.66
Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE: BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide.
Why Does BCO Worry Us?
- Sales trends were unexciting over the last two years as its 4% annual growth was below the typical business services company
- Free cash flow margin shrank by 3.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $93.71 per share, Brink's trades at 12.6x forward P/E. Read our free research report to see why you should think twice about including BCO in your portfolio.
Stocks We Like More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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