Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
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 steer clear of and a few better alternatives.
Marqeta (MQ)
Rolling One-Year Beta: 0.30
Powering the cards behind innovative fintech services like Block's Cash App, Marqeta (NASDAQ: MQ) provides a cloud-based platform that allows businesses to create customized payment card programs and process card transactions.
Why Are We Wary of MQ?
- Products and services have few die-hard fans as sales have declined by 4.7% annually over the last three years
- Overall productivity fell over the last year as its plummeting sales were accompanied by a decline in its operating margin
- Low free cash flow margin of 9.6% for the last year gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Marqeta is trading at $6.45 per share, or 4.5x forward price-to-sales. If you’re considering MQ for your portfolio, see our FREE research report to learn more.
Caleres (CAL)
Rolling One-Year Beta: 0.85
The owner of Dr. Scholl's, Caleres (NYSE: CAL) is a footwear company offering a range of styles.
Why Do We Think CAL Will Underperform?
- Annual revenue declines of 3.8% over the last two years indicate problems with its market positioning
- Projected sales for the next 12 months are flat and suggest demand will be subdued
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Caleres’s stock price of $15 implies a valuation ratio of 4.9x forward P/E. Dive into our free research report to see why there are better opportunities than CAL.
Charter (CHTR)
Rolling One-Year Beta: 0.79
Operating as Spectrum, Charter (NASDAQ: CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.
Why Are We Hesitant About CHTR?
- Sluggish trends in its internet subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $265 per share, Charter trades at 6.4x forward P/E. To fully understand why you should be careful with CHTR, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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-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
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