3 Low-Volatility Stocks We Keep Off Our Radar

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. That said, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.

Darden (DRI)

Rolling One-Year Beta: 0.45

Founded in 1968 as Red Lobster, Darden (NYSE:DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Why Does DRI Give Us Pause?

1. Sizable revenue base leads to growth challenges as its 6% annual revenue increases over the last six years fell short of other restaurant companies
2. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
3. Gross margin of 21.5% is below its competitors, leaving less money for marketing and promotions

Darden is trading at $205.98 per share, or 19.1x forward P/E. Check out our free in-depth research report to learn more about why DRI doesn’t pass our bar.

Danaher (DHR)

Rolling One-Year Beta: 0.84

Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE:DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.

Why Do We Think Twice About DHR?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.9% annually over the last two years
2. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
3. 7.9 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

At $206.35 per share, Danaher trades at 25.5x forward P/E. Read our free research report to see why you should think twice about including DHR in your portfolio, it’s free.

Franklin Resources (BEN)

Rolling One-Year Beta: 0.94

Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE:BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.

Why Do We Steer Clear of BEN?

1. Annual revenue growth of 2.3% over the last two years was below our standards for the financials sector
2. Earnings per share fell by 4.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. ROE of 8.5% reflects management’s challenges in identifying attractive investment opportunities

Story ContinuesFranklin Resources’s stock price of $25.29 implies a valuation ratio of 10.8x forward P/E. To fully understand why you should be careful with BEN, check out our full research report (it’s free).

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 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-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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