Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. That said, here are three low-volatility stocks to avoid and some better opportunities instead.
Torrid (CURV)
Rolling One-Year Beta: 0.85
Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE:CURV) is a plus-size women’s apparel and accessories retailer.
Why Do We Think CURV Will Underperform?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Sales are projected to tank by 6.1% over the next 12 months as demand evaporates
- Earnings per share have contracted by 52.4% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
Torrid is trading at $2.79 per share, or 22.1x forward P/E. Read our free research report to see why you should think twice about including CURV in your portfolio.
Laureate Education (LAUR)
Rolling One-Year Beta: 0.87
Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ:LAUR) is a global network of higher education institutions.
Why Does LAUR Fall Short?
- Sluggish trends in its enrolled students suggest customers aren’t adopting its solutions as quickly as the company hoped
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 4.3% annually while its revenue grew
- ROIC of 7.6% reflects management’s challenges in identifying attractive investment opportunities
At $24.56 per share, Laureate Education trades at 16x forward P/E. To fully understand why you should be careful with LAUR, check out our full research report (it’s free).
Omnicom Group (OMC)
Rolling One-Year Beta: 0.83
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE:OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Why Do We Think Twice About OMC?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Estimated sales growth of 2% for the next 12 months implies demand will slow from its two-year trend
- 7.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Omnicom Group’s stock price of $74.17 implies a valuation ratio of 8.7x forward P/E. If you’re considering OMC for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 183% over the last five years (as of March 31st 2025).
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-micro-cap company Tecnoglass (+1,754% 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