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. Keeping that in mind, here are three low-volatility stocks to avoid and some better opportunities instead.
fuboTV (FUBO)
Rolling One-Year Beta: -1.55
Originally launched as a soccer streaming platform, fuboTV (NYSE: FUBO) is a video streaming service specializing in live sports, news, and entertainment content.
Why Do We Avoid FUBO?
- Demand for its offerings was relatively low as its number of domestic subscribers has underwhelmed
- Historical operating margin losses point to an inefficient cost structure
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 9.3 percentage points
fuboTV is trading at $3.60 per share, or 43.7x forward EV-to-EBITDA. To fully understand why you should be careful with FUBO, check out our full research report (it’s free for active Edge members).
Coty (COTY)
Rolling One-Year Beta: 0.87
With a portfolio boasting many household brands, Coty (NYSE: COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.
Why Should You Sell COTY?
- Absence of organic revenue growth over the past one years suggests it may have to lean into acquisitions to drive its expansion
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- ROIC of 2.4% reflects management’s challenges in identifying attractive investment opportunities
Coty’s stock price of $4.11 implies a valuation ratio of 9.2x forward P/E. If you’re considering COTY for your portfolio, see our FREE research report to learn more.
Arbor Realty Trust (ABR)
Rolling One-Year Beta: 0.73
With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust (NYSE: ABR) is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.
Why Are We Out on ABR?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 8.7% annually over the last two years
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 23.9% annually, worse than its revenue
- Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 3.3% annually over the last two years
At $11.95 per share, Arbor Realty Trust trades at 1x forward P/B. Dive into our free research report to see why there are better opportunities than ABR.
High-Quality Stocks for All Market Conditions
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Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum 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).
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