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. Keeping that in mind, here are three low-volatility stocks to avoid and some better opportunities instead.
fuboTV (FUBO)
Rolling One-Year Beta: -1.41
Originally launched as a soccer streaming platform, fuboTV (NYSE: FUBO) is a video streaming service specializing in live sports, news, and entertainment content.
Why Should You Dump FUBO?
- Number of domestic subscribers has disappointed over the past two years, indicating weak demand for its offerings
- Persistent operating margin losses suggest the business manages its expenses poorly
- Poor free cash flow margin of 0.7% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $2.64 per share, fuboTV trades at 88.7x forward P/E. Read our free research report to see why you should think twice about including FUBO in your portfolio.
Cogent (CCOI)
Rolling One-Year Beta: 0.88
Operating a massive network spanning 20,000 miles of fiber optic cable and connecting to over 3,200 buildings worldwide, Cogent Communications (NASDAQ: CCOI) provides high-speed Internet access, private network services, and data center colocation to businesses and bandwidth-intensive organizations across 54 countries.
Why Are We Cautious About CCOI?
- Demand for its offerings was relatively low as its number of total connections has underwhelmed
- Waning returns on capital imply its previous profit engines are losing steam
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Cogent is trading at $24.15 per share, or 10.1x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than CCOI.
Goodyear (GT)
Rolling One-Year Beta: 0.23
With its iconic blimp floating above major sporting events since 1925, Goodyear (NYSE: GT) is one of the world's largest tire manufacturers, producing and selling tires for automobiles, trucks, aircraft, and other vehicles, along with related services.
Why Are We Out on GT?
- Declining unit sales over the past two years imply it may need to invest in improvements to get back on track
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.2 percentage points
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
Goodyear’s stock price of $9.15 implies a valuation ratio of 7.7x forward P/E. Check out our free in-depth research report to learn more about why GT doesn’t pass our bar.
Stocks We Like More
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
