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.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here are three low-volatility stocks to avoid and some better opportunities instead.
Wabash (WNC)
Rolling One-Year Beta: 0.59
With its first trailer reportedly built on two sawhorses, Wabash (NYSE: WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.
Why Are We Out on WNC?
- Backlog has dropped by 32.8% on average over the past two years, suggesting it’s losing orders as competition picks up
- Gross margin of 13.9% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
Wabash’s stock price of $8.67 implies a valuation ratio of 9.1x forward P/E. Check out our free in-depth research report to learn more about why WNC doesn’t pass our bar.
Honeywell (HON)
Rolling One-Year Beta: 0.73
Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ: HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.
Why Does HON Give Us Pause?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Earnings per share lagged its peers over the last five years as they only grew by 3.5% annually
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.2 percentage points
Honeywell is trading at $213.50 per share, or 20.1x forward P/E. To fully understand why you should be careful with HON, check out our full research report (it’s free).
AT&T (T)
Rolling One-Year Beta: 0.18
Founded by Alexander Graham Bell, AT&T (NYSE: T) is a multinational telecomm conglomerate providing a range of communications and internet services.
Why Should You Sell T?
- Products and services have few die-hard fans as sales have declined by 7.3% annually over the last five years
- Sales were less profitable over the last five years as its earnings per share fell by 10.9% annually, worse than its revenue declines
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $27.85 per share, AT&T trades at 13.3x forward P/E. Dive into our free research report to see why there are better opportunities than T.
Stocks That Overcame Trump’s 2018 Tariffs
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 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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.
