Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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 that don’t make the cut and some better opportunities instead.
BJ's (BJ)
Rolling One-Year Beta: 0.58
Appealing to the budget-conscious individual shopping for a household, BJ’s Wholesale Club (NYSE: BJ) is a membership-only retail chain that sells groceries, appliances, electronics, and household items, often in bulk quantities.
Why Do We Think Twice About BJ?
- Annual sales growth of 9.2% over the last five years lagged behind its consumer retail peers as its large revenue base made it difficult to generate incremental demand
- Gross margin of 18.3% is an output of its commoditized inventory
- Responsiveness to unforeseen market trends is restricted due to its substandard operating profitability
BJ’s stock price of $111.39 implies a valuation ratio of 26.1x forward P/E. If you’re considering BJ for your portfolio, see our FREE research report to learn more.
CSX (CSX)
Rolling One-Year Beta: 0.63
Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ: CSX) is a transportation company specializing in freight rail services.
Why Should You Dump CSX?
- Flat unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 6.6% annually, worse than its revenue
- Free cash flow margin shrank by 15.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
CSX is trading at $31.40 per share, or 17.1x forward P/E. Dive into our free research report to see why there are better opportunities than CSX.
Accenture (ACN)
Rolling One-Year Beta: 0.57
With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE: ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.
Why Are We Cautious About ACN?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.1% for the last two years
- Free cash flow margin shrank by 5.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Waning returns on capital imply its previous profit engines are losing steam
At $320 per share, Accenture trades at 24.9x forward P/E. Check out our free in-depth research report to learn more about why ACN doesn’t pass our bar.
Stocks We Like More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 176% over the last five years.
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.
