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.
Pilgrim's Pride (PPC)
Rolling One-Year Beta: 0.45
Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ: PPC) produces, processes, and distributes chicken products to retailers and food service customers.
Why Do We Think PPC Will Underperform?
- Sizable revenue base leads to growth challenges as its 1.8% annual revenue increases over the last three years fell short of other consumer staples companies
- Sales are projected to tank by 1.3% over the next 12 months as demand evaporates
- Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 12.5% that must be offset through higher volumes
Pilgrim's Pride is trading at $37.39 per share, or 8.9x forward P/E. Dive into our free research report to see why there are better opportunities than PPC.
Ball (BALL)
Rolling One-Year Beta: 0.55
Started with a $200 loan in 1880, Ball (NYSE: BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.
Why Is BALL Risky?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- High input costs result in an inferior gross margin of 21.5% that must be offset through higher volumes
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $48.98 per share, Ball trades at 12.6x forward P/E. Read our free research report to see why you should think twice about including BALL in your portfolio.
HA Sustainable Infrastructure Capital (HASI)
Rolling One-Year Beta: 0.47
With a proprietary "CarbonCount" metric that quantifies the environmental impact of each dollar invested, HA Sustainable Infrastructure Capital (NYSE: HASI) is an investment firm that finances and develops climate-positive infrastructure projects across renewable energy, energy efficiency, and ecological restoration.
Why Are We Hesitant About HASI?
- Underwhelming 8% return on equity reflects management’s difficulties in finding profitable growth opportunities
HA Sustainable Infrastructure Capital’s stock price of $32 implies a valuation ratio of 11.3x forward P/E. Check out our free in-depth research report to learn more about why HASI doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 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.
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