Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.
Yelp (YELP)
Rolling One-Year Beta: 0.40
Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews.
Why Is YELP Not Exciting?
- May need to improve its platform and marketing strategy as its 7.4% average growth in paying advertising accounts underwhelmed
- Lackluster growth in its average revenue per user coupled with its weaker engagement trends led to sluggish demand over the last two years
- Estimated sales growth of 1.1% for the next 12 months implies demand will slow from its three-year trend
Yelp’s stock price of $28.04 implies a valuation ratio of 4.2x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than YELP.
Monarch (MCRI)
Rolling One-Year Beta: 0.66
Established in 1993, Monarch (NASDAQ:MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.
Why Do We Think MCRI Will Underperform?
- Annual revenue growth of 4.5% over the last two years was below our standards for the consumer discretionary sector
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
- Rising returns on capital show management is making relatively better investments
At $89.22 per share, Monarch trades at 15.7x forward P/E. To fully understand why you should be careful with MCRI, check out our full research report (it’s free).
Gartner (IT)
Rolling One-Year Beta: 0.82
With over 2,500 research experts guiding organizations through complex technology landscapes, Gartner (NYSE:IT) provides research, advisory services, and conferences that help executives make better decisions about technology and other business priorities.
Why Does IT Worry Us?
- Estimated sales growth of 2.7% for the next 12 months implies demand will slow from its two-year trend
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 4.4 percentage points
- 9.3 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
Gartner is trading at $222.65 per share, or 17.5x forward P/E. If you’re considering IT for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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.