Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.

Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.

Biogen (BIIB)

Rolling One-Year Beta: 0.56

Founded in 1978 and pioneering treatments for some of medicine's most complex challenges, Biogen (NASDAQ: BIIB) develops and markets therapies for neurological conditions, including multiple sclerosis, Alzheimer's disease, spinal muscular atrophy, and rare diseases.

Why Do We Think Twice About BIIB?

1. Annual sales declines of 7.2% for the past five years show its products and services struggled to connect with the market during this cycle
2. Estimated sales decline of 7% for the next 12 months implies an even more challenging demand environment
3. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 15.2% annually, worse than its revenue

Biogen’s stock price of $156.31 implies a valuation ratio of 10.2x forward P/E. Check out our free in-depth research report to learn more about why BIIB doesn’t pass our bar.

Bio-Techne (TECH)

Rolling One-Year Beta: 0.79

With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ: TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.

Why Should You Sell TECH?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Revenue base of $1.22 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
3. 12 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 $60 per share, Bio-Techne trades at 29.1x forward P/E. Read our free research report to see why you should think twice about including TECH in your portfolio.

Essent Group (ESNT)

Rolling One-Year Beta: 0.63

Serving as a crucial bridge between homebuyers and the American dream of homeownership, Essent Group (NYSE: ESNT) provides private mortgage insurance and title services that enable lenders to offer home loans with down payments of less than 20%.

Why Does ESNT Fall Short?

1. Sluggish 3.6% annualized growth in net premiums earned over the last five years indicates the firm trailed its insurance peers
2. Day-to-day expenses have swelled relative to revenue over the last two years as its pre-tax profit margin fell by 12.5 percentage points
3. Annual earnings per share growth of 4.9% underperformed its revenue over the last two years, showing its incremental sales were less profitable

Essent Group is trading at $62.57 per share, or 1x forward P/B. Dive into our free research report to see why there are better opportunities than ESNT.

Stocks We Like More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% 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

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