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 steer clear of and a few better alternatives.

Best Buy (BBY)

Rolling One-Year Beta: 0.56

With humble beginnings as a stereo equipment seller, Best Buy (NYSE:BBY) now sells a broad selection of consumer electronics, appliances, and home office products.

Why Does BBY Fall Short?

Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience Gross margin of 22.3% is an output of its commoditized inventory Operating margin of 3.3% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments

Best Buy is trading at $72.50 per share, or 11x forward P/E. Dive into our free research report to see why there are better opportunities than BBY.

Shyft (SHYF)

Rolling One-Year Beta: 0.91

Notably receiving an order from FedEx for electric vehicles, Shyft (NASDAQ:SHYF) offers specialty vehicles and truck bodies for various industries.

Why Do We Think SHYF Will Underperform?

Annual sales declines of 13.7% for the past two years show its products and services struggled to connect with the market during this cycle Free cash flow margin shrank by 6.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Diminishing returns on capital suggest its earlier profit pools are drying up

Shyft’s stock price of $9.47 implies a valuation ratio of 9x forward P/E. To fully understand why you should be careful with SHYF, check out our full research report (it’s free).

Labcorp (LH)

Rolling One-Year Beta: 0.36

With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp (NYSE:LH) provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide.

Why Are We Hesitant About LH?

Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 13.3 percentage points Waning returns on capital imply its previous profit engines are losing steam

Story Continues

At $246.27 per share, Labcorp trades at 14.9x forward P/E. Check out our free in-depth research report to learn more about why LH doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.

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