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.
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.
Keurig Dr Pepper (KDP)
Rolling One-Year Beta: 0.15
Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ: KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.
Why Is KDP Not Exciting?
- Annual sales growth of 5.8% over the last three years lagged behind its consumer staples peers as its large revenue base made it difficult to generate incremental demand
- Efficiency has decreased over the last year as its operating margin fell by 5.9 percentage points
- Underwhelming 5.8% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $29.89 per share, Keurig Dr Pepper trades at 14.1x forward P/E. If you’re considering KDP for your portfolio, see our FREE research report to learn more.
Landstar (LSTR)
Rolling One-Year Beta: 0.77
Covering billions of miles throughout North America, Landstar (NASDAQ: LSTR) is a transportation company specializing in freight and last-mile delivery services.
Why Should You Dump LSTR?
- Sales tumbled by 5.4% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share have dipped by 6.1% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Eroding returns on capital suggest its historical profit centers are aging
Landstar is trading at $136.43 per share, or 30.5x forward P/E. To fully understand why you should be careful with LSTR, check out our full research report (it’s free).
Commerce Bancshares (CBSH)
Rolling One-Year Beta: 0.62
Founded in 1865 during the post-Civil War economic boom, Commerce Bancshares (NASDAQGS:CBSH) is a Midwest-focused bank holding company that provides retail, commercial, and wealth management services to individuals and businesses.
Why Are We Wary of CBSH?
- Annual revenue growth of 5.6% over the last five years was below our standards for the banking sector
- 6% annual net interest income growth over the last five years was slower than its banking peers
- Efficiency ratio is expected to worsen by 1.4 percentage points over the next year
Commerce Bancshares’s stock price of $53.90 implies a valuation ratio of 1.7x forward P/B. Read our free research report to see why you should think twice about including CBSH in your portfolio.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
