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.
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.
Varonis (VRNS)
Rolling One-Year Beta: 0.96
Founded by a duo of former Israeli Defense Forces cyber warfare engineers, Varonis (NASDAQ: VRNS) offers software-as-service that helps customers protect data from cyber threats and gain visibility into how enterprise data is being used.
Why Is VRNS Not Exciting?
- Annual revenue growth of 11% over the last three years was below our standards for the software sector
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 2.9 percentage points over the next year
At $54.73 per share, Varonis trades at 9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than VRNS.
Worthington (WOR)
Rolling One-Year Beta: 0.89
Founded by a steel salesman, Worthington (NYSE: WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets.
Why Should You Sell WOR?
- Annual sales declines of 17.7% for the past five years show its products and services struggled to connect with the market during this cycle
- Earnings per share have dipped by 27.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Worthington’s stock price of $61.51 implies a valuation ratio of 18.5x forward P/E. If you’re considering WOR for your portfolio, see our FREE research report to learn more.
Corcept (CORT)
Rolling One-Year Beta: 0.25
Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.
Why Does CORT Worry Us?
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 16.9 percentage points
- Earnings per share fell by 2.8% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Diminishing returns on capital suggest its earlier profit pools are drying up
Corcept is trading at $69 per share, or 39.7x forward P/E. Read our free research report to see why you should think twice about including CORT in your portfolio.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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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