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 avoid and some better opportunities instead.
Asure Software (ASUR)
Rolling One-Year Beta: 0.94
Operating in the often-overlooked smaller metropolitan markets where HR expertise can be scarce, Asure Software (NASDAQ: ASUR) provides cloud-based human capital management software and services that help small and medium-sized businesses manage payroll, taxes, time tracking, and HR compliance.
Why Do We Steer Clear of ASUR?
- Sales trends were unexciting over the last two years as its 4% annual growth was well below the typical software company
- Operating margin was unchanged over the last year, suggesting it failed to gain leverage on its fixed costs
- Poor free cash flow margin of 5.5% for the last year limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Asure Software is trading at $7.43 per share, or 1.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ASUR.
PlayStudios (MYPS)
Rolling One-Year Beta: 0.92
Founded by a team of former gaming industry executives, PlayStudios (NASDAQ: MYPS) offers free-to-play digital casino games.
Why Should You Sell MYPS?
- Products and services aren't resonating with the market as its revenue declined by 1.2% annually over the last five years
- Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential
- Low free cash flow margin of 14.2% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
At $0.47 per share, PlayStudios trades at 0.2x forward price-to-sales. Read our free research report to see why you should think twice about including MYPS in your portfolio.
Evolent Health (EVH)
Rolling One-Year Beta: 0.57
Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE: EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.
Why Does EVH Worry Us?
- Sales trends were unexciting over the last two years as its 7.1% annual growth was below the typical healthcare company
- Push for growth has led to negative returns on capital, signaling value destruction, and its falling returns suggest its earlier profit pools are drying up
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Evolent Health’s stock price of $2.80 implies a valuation ratio of 11.8x forward P/E. To fully understand why you should be careful with EVH, check out our full research report (it’s free).
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
