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

Under Armour (UAA)

Rolling One-Year Beta: 0.77

Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE:UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.

Why Do We Avoid UAA?

1. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers

2. Forecasted revenue decline of 3.3% for the upcoming 12 months implies demand will fall even further

3. Low returns on capital reflect management’s struggle to allocate funds effectively

Under Armour’s stock price of $5.71 implies a valuation ratio of 17.8x forward price-to-earnings. If you’re considering UAA for your portfolio, see our FREE research report to learn more .

Teledyne (TDY)

Rolling One-Year Beta: 0.89

Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE:TDY) offers digital imaging and instrumentation products for various industries.

Why Are We Cautious About TDY?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth

2. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its decreasing returns suggest its historical profit centers are aging

3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Teledyne is trading at $458.10 per share, or 20.7x forward price-to-earnings. To fully understand why you should be careful with TDY, check out our full research report (it’s free) .

QuidelOrtho (QDEL)

Rolling One-Year Beta: 0.23

Born from the 2022 merger of Quidel and Ortho Clinical Diagnostics, QuidelOrtho (NASDAQ:QDEL) develops and manufactures diagnostic testing solutions for healthcare providers, from rapid point-of-care tests to complex laboratory instruments and systems.

Why Do We Steer Clear of QDEL?

1. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track

2. 20.5 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

3. Waning returns on capital imply its previous profit engines are losing steam