Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.

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.

Deere (DE)

Rolling One-Year Beta: 0.81

Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE: DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.

Why Should You Sell DE?

1. Annual sales declines of 14.5% for the past two years show its products and services struggled to connect with the market during this cycle
2. Eroding returns on capital suggest its historical profit centers are aging
3. High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $470.91 per share, Deere trades at 28.5x forward P/E. Dive into our free research report to see why there are better opportunities than DE.

Select Medical (SEM)

Rolling One-Year Beta: 0.60

With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE: SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.

Why Do We Avoid SEM?

1. Flat admissions over the past two years suggest it might have to lower prices to accelerate growth
2. Sales over the last five years were less profitable as its earnings per share fell by 11.7% annually while its revenue was flat
3. Waning returns on capital imply its previous profit engines are losing steam

Select Medical is trading at $15.01 per share, or 12.4x forward P/E. Read our free research report to see why you should think twice about including SEM in your portfolio.

Dime Community Bancshares (DCOM)

Rolling One-Year Beta: 0.78

With roots dating back to 1910 and a name that evokes the historic "dime savings banks" of America's past, Dime Community Bancshares (NASDAQ: DCOM) is a New York-based bank holding company that provides commercial banking and financial services to businesses and consumers throughout Greater Long Island.

Why Does DCOM Worry Us?

1. 6.5% annual revenue growth over the last two years was slower than its banking peers
2. Net interest margin of 2.7% reflects its high servicing and capital costs
3. Annual earnings per share growth of 1.6% underperformed its revenue over the last five years, showing its incremental sales were less profitable

Dime Community Bancshares’s stock price of $31.76 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with DCOM, check out our full research report (it’s free for active Edge members).

Stocks We Like More

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 6 Stocks for this week. 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-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.