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 to steer clear of and a few better alternatives.
Sprinklr (CXM)
Rolling One-Year Beta: 0.53
With a proprietary AI engine processing 450 million data points daily across 30+ digital channels, Sprinklr (NYSE:CXM) provides cloud-based software that helps large enterprises manage customer experiences across social, messaging, chat, and voice channels.
Why Do We Steer Clear of CXM?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 2.2% underwhelmed
- Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
Sprinklr’s stock price of $5.31 implies a valuation ratio of 1.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than CXM.
HighPeak Energy (HPK)
Rolling One-Year Beta: -1.17
Operating in the oil-rich northeastern corner of the Midland Basin where Howard and Borden counties meet, HighPeak Energy (NASDAQ:HPK) explores for, develops, and produces crude oil, natural gas liquids, and natural gas.
Why Do We Think Twice About HPK?
- Smaller revenue base of $893.8 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Efficiency has decreased over the last five years as its EBITDA margin fell by 18.5 percentage points
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
At $7.63 per share, HighPeak Energy trades at 3.8x forward EV-to-EBITDA. To fully understand why you should be careful with HPK, check out our full research report (it’s free).
Green Plains (GPRE)
Rolling One-Year Beta: -0.44
Operating one of North America's largest ethanol platforms with capacity to process 310 million bushels of corn annually, Green Plains (NASDAQ:GPRE) operates ten biorefineries that convert corn into ethanol for fuel, distillers grains for animal feed, and renewable corn oil.
Why Do We Pass on GPRE?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.5% annually over the last five years
- Gross margin of 5.8% is below its competitors, leaving less money to invest in exploration and production
- Cash burn makes us question whether it can achieve sustainable long-term growth
Green Plains is trading at $14.85 per share, or 8.3x forward P/E. Read our free research report to see why you should think twice about including GPRE in your portfolio.
Stocks We Like More
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.