3 Low-Volatility Stocks We Keep Off Our Radar
Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here are three low-volatility stocks to avoid and some better opportunities instead.
G-III (GIII)
Rolling One-Year Beta: 0.61
Founded as a small leather goods business, G-III (NASDAQ:GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.
Why Should You Sell GIII?
- 3.9% annual revenue growth over the last five years was slower than its consumer discretionary peers
- Low free cash flow margin of 12.7% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- ROIC hasn’t moved, making investors question whether its recent investments can increase profitability
At $29.86 per share, G-III trades at 12.6x forward P/E. If you’re considering GIII for your portfolio, see our FREE research report to learn more.
Greenbrier (GBX)
Rolling One-Year Beta: 0.84
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.
Why Does GBX Give Us Pause?
- Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- High input costs result in an inferior gross margin of 13.9% that must be offset through higher volumes
- Negative free cash flow raises questions about the return timeline for its investments
Greenbrier is trading at $46.50 per share, or 11.5x forward P/E. Dive into our free research report to see why there are better opportunities than GBX.
WaFd Bank (WAFD)
Rolling One-Year Beta: 0.65
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 Is WAFD Risky?
- Annual net interest income growth of 6.9% over the last five years was below our standards for the banking sector
- Net interest margin dropped by 76 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market
- Sales were less profitable over the last two years as its earnings per share fell by 14.8% annually, worse than its revenue declines
WaFd Bank’s stock price of $32.18 implies a valuation ratio of 0.9x forward P/B. To fully understand why you should be careful with WAFD, check out our full research report (it’s free for active Edge members).
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 Growth Stocks for this month. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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