Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.
GoDaddy (GDDY)
Rolling One-Year Beta: 0.33
Known for its memorable Super Bowl commercials that put it on the map, GoDaddy (NYSE: GDDY) is a domain registrar and web services provider that helps entrepreneurs establish an online presence through domain registration, website building, hosting, and e-commerce tools.
Why Do We Steer Clear of GDDY?
- Offerings struggled to generate meaningful interest as its average billings growth of 6.2% over the last year did not impress
- Estimated sales growth of 5.2% for the next 12 months implies demand will slow from its two-year trend
- Gross margin of 63.8% reflects its relatively high servicing costs
GoDaddy’s stock price of $95.24 implies a valuation ratio of 2.4x forward price-to-sales. If you’re considering GDDY for your portfolio, see our FREE research report to learn more.
Labcorp (LH)
Rolling One-Year Beta: -0.00
With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp (NYSE: LH) provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide.
Why Does LH Worry Us?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2.6% annually over the last five years
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
At $308.38 per share, Labcorp trades at 16.3x forward P/E. To fully understand why you should be careful with LH, check out our full research report (it’s free).
WaFd Bank (WAFD)
Rolling One-Year Beta: 0.49
Founded in 1917 and rebranded from Washington Federal in 2023, WaFd (NASDAQ: WAFD) is a bank holding company that provides lending, deposit services, and insurance through its Washington Federal Bank subsidiary across eight western states.
Why Do We Pass on WAFD?
- Net interest income trends were unexciting over the last five years as its 7.4% annual growth was below the typical banking firm
- Incremental sales over the last two years were less profitable as its earnings per share were flat while its revenue grew
- Projected tangible book value per share decline of 2.8% for the next 12 months points to tough credit quality challenges ahead
WaFd Bank is trading at $30.89 per share, or 0.8x forward P/B. Read our free research report to see why you should think twice about including WAFD in your portfolio.
Stocks We Like More
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
