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华尔街日报3 Low-Volatility Stocks We Keep Off Our Radar
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 that don’t make the cut and some better opportunities instead.
Toll Brothers (TOL)
Rolling One-Year Beta: 0.81
Started by two brothers who started by building and selling just one home in Pennsylvania, today Toll Brothers (NYSE:TOL) is a luxury homebuilder across the United States.
Why Are We Hesitant About TOL?
- Backlog has dropped by 8.5% on average over the past two years, suggesting it’s losing orders as competition picks up
- Forecasted revenue decline of 4.7% for the upcoming 12 months implies demand will fall off a cliff
- 3.6 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 $138.72 per share, Toll Brothers trades at 10.9x forward P/E. To fully understand why you should be careful with TOL, check out our full research report (it’s free for active Edge members).
STAAR Surgical (STAA)
Rolling One-Year Beta: 0.94
With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ:STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.
Why Should You Sell STAA?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Free cash flow margin dropped by 37.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Eroding returns on capital suggest its historical profit centers are aging
STAAR Surgical is trading at $23.61 per share, or 46.9x forward P/E. Dive into our free research report to see why there are better opportunities than STAA.
Arbor Realty Trust (ABR)
Rolling One-Year Beta: 0.76
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 Do We Pass on ABR?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 14.8% annually over the last two years
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 4% annually over the last two years
Arbor Realty Trust’s stock price of $7.97 implies a valuation ratio of 0.7x forward P/B. Check out our free in-depth research report to learn more about why ABR doesn’t pass our bar.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our 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 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-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.