Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here are three low-volatility stocks to steer clear of and a few better alternatives.
Omnicell (OMCL)
Rolling One-Year Beta: 0.55
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?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.5% annually over the last two years
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 6.1% annually
- 13.1 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
Omnicell is trading at $33.12 per share, or 22.9x forward P/E. Check out our free in-depth research report to learn more about why OMCL doesn’t pass our bar.
Horace Mann Educators (HMN)
Rolling One-Year Beta: 0.34
Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE: HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.
Why Is HMN Risky?
- Net premiums earned expanded by 5.4% annually over the last five years, falling below our expectations for the insurance sector
- Book value per share tumbled by 3.4% annually over the last five years, showing insurance sector trends are working against its favor during this cycle
- Below-average return on equity indicates management struggled to find compelling investment opportunities
Horace Mann Educators’s stock price of $46.96 implies a valuation ratio of 1.4x forward P/B. Read our free research report to see why you should think twice about including HMN in your portfolio.
Sixth Street Specialty Lending (TSLX)
Rolling One-Year Beta: 0.54
Originally launched as TPG Specialty Lending before rebranding in 2020, Sixth Street Specialty Lending (NYSE: TSLX) is a business development company that provides customized financing solutions to middle-market companies across various industries.
Why Are We Cautious About TSLX?
- Performance over the past five years shows its incremental sales were less profitable, as its 3.1% annual earnings per share growth trailed its revenue gains
At $24.77 per share, Sixth Street Specialty Lending trades at 11.9x forward P/E. Check out our free in-depth research report to learn more about why TSLX doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 Kadant (+351% 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
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