A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.
Kraft Heinz (KHC)
Rolling One-Year Beta: 0.20
The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ:KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.
Why Should You Dump KHC?
- Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Efficiency has decreased over the last year as its operating margin fell by 34.6 percentage points
- Underwhelming 1.2% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam
At $25.35 per share, Kraft Heinz trades at 10.2x forward P/E. Read our free research report to see why you should think twice about including KHC in your portfolio.
Omnicell (OMCL)
Rolling One-Year Beta: 0.87
Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ:OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency.
Why Do We Avoid OMCL?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 9.5 percentage points
- Earnings per share fell by 5.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
Omnicell’s stock price of $37.16 implies a valuation ratio of 20.6x forward P/E. To fully understand why you should be careful with OMCL, check out our full research report (it’s free for active Edge members).
BancFirst (BANF)
Rolling One-Year Beta: 0.88
Operating as a "super community bank" with a decentralized management approach that emphasizes local responsiveness, BancFirst Corporation (NASDAQ:BANF) operates as a financial holding company providing commercial banking services to retail customers and small to medium-sized businesses primarily in Oklahoma and Texas.
Why Does BANF Fall Short?
- Annual net interest income growth of 9.5% over the last five years was below our standards for the banking sector
- Estimated net interest income growth of 6.2% for the next 12 months implies demand will slow from its five-year trend
- Performance over the past two years shows its incremental sales were less profitable, as its 1.8% annual earnings per share growth trailed its revenue gains
BancFirst is trading at $113.62 per share, or 2x forward P/B. Check out our free in-depth research report to learn more about why BANF doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 Exlservice (+354% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.