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.

Guess (GES)

Rolling One-Year Beta: 0.89

Flexing the iconic upside-down triangle logo with a question mark, Guess (NYSE: GES) is a global fashion brand known for its trendy clothing, accessories, and denim wear.

Why Should You Sell GES?

1. 7.3% annual revenue growth over the last two years was slower than its consumer discretionary peers
2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Guess’s stock price of $16.89 implies a valuation ratio of 11.7x forward P/E. Dive into our free research report to see why there are better opportunities than GES.

FedEx (FDX)

Rolling One-Year Beta: 0.95

Sporting one of the largest air cargo fleets in the world, FedEx (NYSE: FDX) is a global provider of parcel and cargo delivery services.

Why Do We Avoid FDX?

1. Annual sales declines of 1.2% for the past two years show its products and services struggled to connect with the market during this cycle
2. Projected sales growth of 1.4% for the next 12 months suggests sluggish demand
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $231 per share, FedEx trades at 11.9x forward P/E. To fully understand why you should be careful with FDX, check out our full research report (it’s free).

Evolent Health (EVH)

Rolling One-Year Beta: -0.16

Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE: EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.

Why Does EVH Worry Us?

1. Sales are projected to tank by 3.9% over the next 12 months as demand evaporates
2. Low free cash flow margin of -0.2% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. Push for growth has led to negative returns on capital, signaling value destruction

Evolent Health is trading at $9.81 per share, or 22x forward P/E. Read our free research report to see why you should think twice about including EVH in your portfolio.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out 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 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 Comfort Systems (+782% 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

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