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 that don’t make the cut and some better opportunities instead.
Campbell's (CPB)
Rolling One-Year Beta: 0.28
With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ: CPB) is a packaged food company with an illustrious portfolio of brands.
Why Are We Out on CPB?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Estimated sales decline of 3.1% for the next 12 months implies a challenging demand environment
- Incremental sales over the last three years were less profitable as its 1.6% annual earnings per share growth lagged its revenue gains
At $30.65 per share, Campbell's trades at 12.5x forward P/E. If you’re considering CPB for your portfolio, see our FREE research report to learn more.
MSCI (MSCI)
Rolling One-Year Beta: 0.82
Originally known as Morgan Stanley Capital International before becoming independent in 2007, MSCI (NYSE: MSCI) provides critical decision support tools, indexes, and analytics that help global investors understand risk and return factors and build more effective investment portfolios.
Why Do We Think Twice About MSCI?
- Push for growth has led to negative returns on capital, signaling value destruction
MSCI’s stock price of $533 implies a valuation ratio of 29.5x forward P/E. Read our free research report to see why you should think twice about including MSCI in your portfolio.
AGNC Investment (AGNC)
Rolling One-Year Beta: 0.51
Born during the 2008 financial crisis when mortgage markets were in turmoil, AGNC Investment (NASDAQ: AGNC) is a real estate investment trust that primarily invests in mortgage-backed securities guaranteed by U.S. government agencies or enterprises.
Why Should You Sell AGNC?
- Annual net interest income declines of 28.5% for the past five years show its loan book struggled during this cycle
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 7.1% annually while its revenue grew
- Annual tangible book value per share declines of 12.1% for the past five years show its capital management struggled during this cycle
AGNC Investment is trading at $9.92 per share, or 1.1x forward P/B. Check out our free in-depth research report to learn more about why AGNC doesn’t pass our bar.
Stocks We Like More
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 Strong Momentum 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-small-cap company Exlservice (+354% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.