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 steer clear of and a few better alternatives.
Crocs (CROX)
Rolling One-Year Beta: 0.56
Founded in 2002, Crocs (NASDAQ: CROX) sells casual footwear and is known for its iconic clog shoe.
Why Should You Dump CROX?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Free cash flow margin is expected to increase by 1.9 percentage points next year, suggesting the company will have more capital to invest or return to shareholders
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $81.42 per share, Crocs trades at 7.1x forward P/E. To fully understand why you should be careful with CROX, check out our full research report (it’s free).
Scorpio Tankers (STNG)
Rolling One-Year Beta: 0.76
Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.
Why Are We Hesitant About STNG?
- Performance surrounding its total vessels has lagged its peers
- Projected sales growth of 3.9% for the next 12 months suggests sluggish demand
- Earnings per share have dipped by 37.6% annually over the past two years, which is concerning because stock prices follow EPS over the long term
Scorpio Tankers is trading at $56.92 per share, or 10.1x forward P/E. If you’re considering STNG for your portfolio, see our FREE research report to learn more.
CoreCivic (CXW)
Rolling One-Year Beta: 0.71
Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE: CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States.
Why Is CXW Risky?
- Demand for its offerings was relatively low as its number of average available beds has underwhelmed
- Earnings per share lagged its peers over the last four years as they only grew by 1.9% annually
- 9.2 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
CoreCivic’s stock price of $20.59 implies a valuation ratio of 15.5x forward P/E. To fully understand why you should be careful with CXW, check out our full research report (it’s free).
Stocks We Like More
Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
