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 to avoid and some better opportunities instead.

Sinclair (SBGI)

Rolling One-Year Beta: 0.65

With over 2,400 hours of local news produced weekly and 640 broadcast channels reaching millions of American homes, Sinclair (NASDAQ: SBGI) operates a network of 185 local television stations across 86 U.S. markets, producing news programming and distributing content from major networks.

Why Is SBGI Risky?

1. Sales tumbled by 7.2% annually over the last five years, showing market trends are working against its favor during this cycle
2. Sales are projected to tank by 9.2% over the next 12 months as demand evaporates
3. Incremental sales over the last two years were much less profitable as its earnings per share fell by 25.1% annually while its revenue grew

Sinclair is trading at $15.41 per share, or 2.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SBGI doesn’t pass our bar.

Biogen (BIIB)

Rolling One-Year Beta: 0.47

Founded in 1978 and pioneering treatments for some of medicine's most complex challenges, Biogen (NASDAQ: BIIB) develops and markets therapies for neurological conditions, including multiple sclerosis, Alzheimer's disease, spinal muscular atrophy, and rare diseases.

Why Does BIIB Fall Short?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 7.4% annually over the last five years
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 15.1% annually, worse than its revenue

At $134.23 per share, Biogen trades at 8.4x forward P/E. To fully understand why you should be careful with BIIB, check out our full research report (it’s free).

Annaly Capital Management (NLY)

Rolling One-Year Beta: 0.59

Operating as a real estate investment trust since 1996 with a focus on generating income from interest rate spreads, Annaly Capital Management (NYSE: NLY) is a diversified capital manager that invests in agency mortgage-backed securities, residential mortgage loans, and mortgage servicing rights.

Why Do We Think NLY Will Underperform?

1. Net interest margin of 0.1% reflects its high servicing and capital costs
2. Earnings per share have contracted by 5% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
3. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 8.5% annually over the last five years

Annaly Capital Management’s stock price of $19.78 implies a valuation ratio of 1.1x forward P/B. Read our free research report to see why you should think twice about including NLY in your portfolio.

Stocks We Like More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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-small-cap company Comfort Systems (+782% 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.