Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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.
Graco (GGG)
Rolling One-Year Beta: 0.91
Founded in 1926, Graco (NYSE: GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.
Why Are We Cautious About GGG?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Earnings per share have dipped by 2.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Eroding returns on capital suggest its historical profit centers are aging
At $83.46 per share, Graco trades at 26.8x forward P/E. To fully understand why you should be careful with GGG, check out our full research report (it’s free for active Edge members).
WesBanco (WSBC)
Rolling One-Year Beta: 0.92
Tracing its roots back to 1870 in West Virginia, WesBanco (NASDAQ: WSBC) is a bank holding company that provides retail and commercial banking, trust services, insurance, and investment products through its subsidiaries across several Midwestern and Mid-Atlantic states.
Why Is WSBC Not Exciting?
- Muted 9% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Annual earnings per share growth of 6.3% underperformed its revenue over the last two years, showing its incremental sales were less profitable
- Tangible book value per share stagnated over the last five years, limiting its ability to leverage its balance sheet to make additional investments
WesBanco’s stock price of $34.24 implies a valuation ratio of 0.9x forward P/B. If you’re considering WSBC for your portfolio, see our FREE research report to learn more.
Oaktree Specialty Lending (OCSL)
Rolling One-Year Beta: 0.60
Managed by Oaktree Capital Management, one of the world's premier alternative investment firms, Oaktree Specialty Lending (NASDAQ: OCSL) is a business development company that provides customized financing solutions to mid-market companies across various industries.
Why Should You Sell OCSL?
- Annual sales declines of 8.6% for the past two years show its products and services struggled to connect with the market during this cycle
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 14.5% annually
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 3.1% annually over the last five years
Oaktree Specialty Lending is trading at $12.65 per share, or 3.8x forward price-to-sales. Check out our free in-depth research report to learn more about why OCSL doesn’t pass our bar.
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 9 Market-Beating Stocks. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
