Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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.
Rush Street Interactive (RSI)
Rolling One-Year Beta: 0.31
Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.
Why Are We Bearish on RSI?
- Sales trends were unexciting over the last five years as its 27.1% annual growth was below the typical consumer discretionary company
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Free cash flow margin is expected to remain in place over the coming year
At $20.05 per share, Rush Street Interactive trades at 26.6x forward P/E. Read our free research report to see why you should think twice about including RSI in your portfolio.
Banner Bank (BANR)
Rolling One-Year Beta: 0.21
Founded in 1890 in Walla Walla, Washington, and evolving through more than a century of economic cycles, Banner Corporation (NASDAQ: BANR) operates Banner Bank, providing commercial banking services, loans, and financial products to individuals and businesses across Washington, Oregon, California, Idaho, and Utah.
Why Do We Think Twice About BANR?
- 3.2% annual revenue growth over the last five years was slower than its banking peers
- Net interest income trends were unexciting over the last five years as its 4.5% annual growth was below the typical banking firm
- Earnings per share lagged its peers over the last five years as they only grew by 4% annually
Banner Bank’s stock price of $67.01 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why BANR doesn’t pass our bar.
ProPetro (PUMP)
Rolling One-Year Beta: 0.07
Operating exclusively in the Permian Basin—one of America's most prolific oil-producing regions—ProPetro (NYSE: PUMP) provides hydraulic fracturing services that pump high-pressure fluid and sand into oil wells to release trapped hydrocarbons.
Why Is PUMP Risky?
- Modest revenue base of $1.16 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Gross margin of 27.3% reflects its high production costs and unfavorable asset base
- Day-to-day expenses have swelled relative to revenue over the last five years as its EBITDA margin fell by 5.9 percentage points
ProPetro is trading at $9.02 per share, or 49.6x forward P/E. Dive into our free research report to see why there are better opportunities than PUMP.
Stocks We Like More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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.
