Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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.
Paylocity (PCTY)
Rolling One-Year Beta: 0.75
Operating in a field where companies traditionally juggled multiple disconnected systems, Paylocity (NASDAQ: PCTY) provides cloud-based human capital management and payroll software solutions that help businesses manage their workforce and HR processes.
Why Are We Wary of PCTY?
- Customers were hesitant to make long-term commitments to its software as its 13% average ARR growth over the last year was sluggish
- Estimated sales growth of 7% for the next 12 months implies demand will slow from its two-year trend
- Operating margin improvement of 1.4 percentage points over the last year demonstrates its ability to scale efficiently
Paylocity is trading at $108.17 per share, or 3.3x forward price-to-sales. Read our free research report to see why you should think twice about including PCTY in your portfolio.
Dine Brands (DIN)
Rolling One-Year Beta: 0.81
Operating a franchise model, Dine Brands (NYSE: DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.
Why Should You Sell DIN?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 6.7 percentage points
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $32.91 per share, Dine Brands trades at 7.3x forward P/E. Check out our free in-depth research report to learn more about why DIN doesn’t pass our bar.
Sysco (SYY)
Rolling One-Year Beta: 0.14
Powering more than 730,000 commercial kitchens across North America and Europe, Sysco (NYSE: SYY) is a global food distributor that supplies restaurants, healthcare facilities, schools, hotels, and other foodservice establishments with food products and related services.
Why Should You Dump SYY?
- Products are reaching more customers as its unit sales averaged 1.1% growth over the past two years
- Free cash flow margin is on track to jump by 1.3 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends
- ROIC hasn’t moved, making investors question whether its recent investments can increase profitability
Sysco’s stock price of $88.84 implies a valuation ratio of 18.8x forward P/E. If you’re considering SYY for your portfolio, see our FREE research report to learn more.
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 9 Market-Beating Stocks. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
