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.
News Corp (NWSA)
Rolling One-Year Beta: 0.80
Established in 2013 after a restructuring, News Corp (NASDAQ:NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
Why Do We Avoid NWSA?
- Annual sales declines of 2.5% for the past five years show its products and services struggled to connect with the market
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.5%
- Low returns on capital reflect management’s struggle to allocate funds effectively
News Corp is trading at $29.43 per share, or 32.9x forward P/E. Read our free research report to see why you should think twice about including NWSA in your portfolio.
Installed Building Products (IBP)
Rolling One-Year Beta: 0.89
Founded in 1977, Installed Building Products (NYSE:IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction.
Why Does IBP Give Us Pause?
- 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
- Projected sales decline of 3.1% for the next 12 months points to a tough demand environment ahead
- Earnings per share lagged its peers over the last two years as they only grew by 5.5% annually
Installed Building Products’s stock price of $201 implies a valuation ratio of 18.9x forward P/E. Dive into our free research report to see why there are better opportunities than IBP.
Connection (CNXN)
Rolling One-Year Beta: 0.86
Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ:CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems.
Why Should You Dump CNXN?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Earnings per share were flat over the last five years and fell short of the peer group average
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $65.17 per share, Connection trades at 18.7x forward P/E. If you’re considering CNXN for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound 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 Exlservice (+354% 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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