Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.
Qualys (QLYS)
Rolling One-Year Beta: 0.81
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?
- Customers were hesitant to make long-term commitments to its software as its 10.3% average ARR growth over the last year was sluggish
- Estimated sales growth of 8.9% for the next 12 months is soft and implies weaker demand
- Operating margin improvement of 3.4 percentage points over the last year demonstrates its ability to scale efficiently
At $220.40 per share, Qualys trades at 9.5x forward price-to-sales. If you’re considering QLYS for your portfolio, see our FREE research report to learn more.
Tyson Foods (TSN)
Rolling One-Year Beta: 0.13
Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.
Why Is TSN Risky?
- Flat unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend
- Gross margin of 6.9% is below its competitors, leaving less money to invest in areas like marketing and production facilities
Tyson Foods’s stock price of $56.54 implies a valuation ratio of 16.4x forward P/E. Read our free research report to see why you should think twice about including TSN in your portfolio.
Travelers (TRV)
Rolling One-Year Beta: -0.11
Tracing its roots back to 1853 when it insured travelers against accidents on steamboats and railroads, Travelers (NYSE: TRV) provides a wide range of commercial and personal property and casualty insurance products to businesses, government units, associations, and individuals.
Why Is TRV Not Exciting?
- Large revenue base constrains its growth potential, as seen in its unexciting 3.1% annualized increases in net premiums earned over the last two years fell below our expectations for the insurance sector
- Estimated sales growth of 1.9% for the next 12 months implies demand will slow from its two-year trend
- Large asset base makes it harder to grow book value per share quickly, and its annual book value per share growth of 4.1% over the last five years was below our standards for the insurance sector
Travelers is trading at $399.20 per share, or 2.8x forward P/B. Dive into our free research report to see why there are better opportunities than TRV.
High-quality stocks for all market conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
