Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here are three low-volatility stocks to avoid and some better opportunities instead.
John Bean (JBTM)
Rolling One-Year Beta: 0.78
Tracing back to its invention of the mechanical milk bottle filler in 1884, John Bean (NYSE: JBT) designs, manufactures, and sells equipment used for food processing and aviation.
Why Do We Steer Clear of JBTM?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- 6.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate
At $123.76 per share, John Bean trades at 20x forward P/E. Dive into our free research report to see why there are better opportunities than JBTM.
Addus HomeCare (ADUS)
Rolling One-Year Beta: 0.41
Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ: ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.
Why Does ADUS Give Us Pause?
- Revenue base of $1.21 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
Addus HomeCare’s stock price of $110.62 implies a valuation ratio of 17.9x forward P/E. If you’re considering ADUS for your portfolio, see our FREE research report to learn more.
Pacific Premier Bancorp (PPBI)
Rolling One-Year Beta: 0.95
With a specialized division that serves homeowners' associations nationwide and a trust division that handles self-directed IRAs with alternative assets, Pacific Premier Bancorp (NASDAQ: PPBI) is a Western US regional bank that provides banking services to small and middle-market businesses, corporations, non-profits, and specialty markets.
Why Should You Dump PPBI?
- Customers borrowered less money this cycle as its net interest income declined by 4.8% annually over the last four years
- Costs have risen faster than its revenue over the last four years, causing its efficiency ratio to worsen by 15.4 percentage points
- Earnings per share fell by 9.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Pacific Premier Bancorp is trading at $22.76 per share, or 0.7x forward P/B. Check out our free in-depth research report to learn more about why PPBI doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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 Tecnoglass (+1,754% 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
