Three Low-Volatility Stocks to Avoid: BYND, ITW, NBTB

Beyond Meat (BYND), Illinois Tool Works (ITW), and NBT Bancorp (NBTB) are low-volatility stocks with mounting challenges. BYND's shrinking unit sales and cash-burning history make its long-term viability questionable. ITW's organic revenue growth has fallen short of benchmarks, and demand is expected to be soft over the next 12 months. NBTB's muted annual net interest income growth and earnings per share growth underperformed its revenue over the last five years.

Low-volatility stocks have traditionally been seen as safe havens in volatile markets, but several companies are now facing mounting challenges that could impact their long-term viability. Among them are Beyond Meat (BYND), Illinois Tool Works (ITW), and NBT Bancorp (NBTB).

Beyond Meat (BYND)

Beyond Meat has been a darling of the plant-based meat market, but it has been facing headwinds. The company reported a 10% decline in unit sales in the first quarter of 2025, driven by a combination of factors including rising prices and a shift in consumer preferences [1]. The company's cash-burning history and the uncertainty surrounding its long-term growth prospects have raised concerns among investors. Despite these challenges, Beyond Meat remains committed to expanding its product offerings and entering new markets to drive growth.

Illinois Tool Works (ITW)

Illinois Tool Works (ITW) has also been facing challenges. The company reported a 3.4% year-on-year decline in revenue in the first quarter of 2025, driven by a 1.6% decline in organic revenue [2]. While the company's adjusted EBITDA margin remained strong at 27.3%, the decline in revenue has raised questions about the company's ability to maintain its growth trajectory. ITW has been facing soft demand in key segments like Food Equipment and Welding, and the company's management has acknowledged the challenges posed by tariffs and other external pressures. However, the company's diversified product portfolio and decentralized structure have allowed it to adjust rapidly to market changes.

NBT Bancorp (NBTB)

NBT Bancorp has been facing muted annual net interest income growth and earnings per share growth that underperformed its revenue over the last five years. The company's net interest income growth has been relatively flat, and its earnings per share growth has lagged behind its revenue growth. While the company has been able to maintain a strong balance sheet, the lack of growth in key metrics has raised questions about its long-term prospects. NBTB has been focusing on cost management and improving its operational efficiency to drive growth, but the company's ability to execute on these initiatives remains to be seen.

Conclusion

Low-volatility stocks like Beyond Meat, Illinois Tool Works, and NBT Bancorp are facing mounting challenges that could impact their long-term viability. Beyond Meat's shrinking unit sales and cash-burning history raise questions about its long-term growth prospects, while Illinois Tool Works' decline in revenue and demand challenges pose risks to its growth trajectory. NBT Bancorp's muted annual net interest income growth and earnings per share growth underperforming its revenue highlight the company's need to improve its operational efficiency and drive growth. Investors should closely monitor these companies' ability to execute on their strategies and navigate the challenges they face.

References

[1] https://en.coinotag.com/vanadi-coffee-considers-e1-billion-bitcoin-investment-to-shift-corporate-strategy-amid-market-challenges/
[2] https://markets.financialcontent.com/stocks/article/stockstory-2025-6-25-the-5-most-interesting-analyst-questions-from-illinois-tool-workss-q1-earnings-call