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 steer clear of and a few better alternatives.
Qualys (QLYS)
Rolling One-Year Beta: 0.63
Originally developed to address the growing complexity of IT security in the cloud era, Qualys (NASDAQ: QLYS) provides a cloud-based platform that helps organizations identify, manage, and protect their IT assets from cyber threats across on-premises, cloud, and mobile environments.
Why Are We Cautious About QLYS?
- Offerings struggled to generate meaningful interest as its average billings growth of 8.3% over the last year did not impress
- Estimated sales growth of 7.8% for the next 12 months implies demand will slow from its two-year trend
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
Qualys’s stock price of $104.35 implies a valuation ratio of 5.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than QLYS.
Boston Beer (SAM)
Rolling One-Year Beta: 0.41
Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE: SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Why Does SAM Worry Us?
- Flat sales over the last three years suggest it must innovate and find new ways to grow
- Revenue base of $1.98 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Estimated sales for the next 12 months are flat and imply a softer demand environment
Boston Beer is trading at $231.50 per share, or 22x forward P/E. To fully understand why you should be careful with SAM, check out our full research report (it’s free).
Assured Guaranty (AGO)
Rolling One-Year Beta: 0.52
Serving as a financial safety net for over $11 trillion in debt service payments since its founding in 2003, Assured Guaranty (NYSE: AGO) provides credit protection products that guarantee scheduled payments on municipal bonds, infrastructure projects, and structured finance obligations.
Why Should You Sell AGO?
- Insurance policy sales contracted this cycle as net premiums earned decreased by 3.6% annually over the last five years
- Projected sales decline of 20% over the next 12 months indicates demand will continue deteriorating
- Underwhelming 7.8% return on equity reflects management’s difficulties in finding profitable growth opportunities
At $86.95 per share, Assured Guaranty trades at 0.7x forward P/B. Read our free research report to see why you should think twice about including AGO in your portfolio.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum 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.
