A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
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 is one low-volatility stock that could succeed under all market conditions and two that may not keep up.
Two Stocks to Sell:
Silgan Holdings (SLGN)
Rolling One-Year Beta: 0.80
Established in 1987, Silgan Holdings (NYSE: SLGN) is a supplier of rigid packaging for consumer goods products, specializing in metal containers, closures, and plastic packaging.
Why Do We Pass on SLGN?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Gross margin of 16.9% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Poor free cash flow margin of 1.5% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $44.25 per share, Silgan Holdings trades at 10.9x forward P/E. To fully understand why you should be careful with SLGN, check out our full research report (it’s free for active Edge members).
Progyny (PGNY)
Rolling One-Year Beta: 0.73
Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ: PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.
Why Are We Wary of PGNY?
- Smaller revenue base of $1.24 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Estimated sales growth of 4.8% for the next 12 months implies demand will slow from its two-year trend
- Low returns on capital reflect management’s struggle to allocate funds effectively
Progyny’s stock price of $19.15 implies a valuation ratio of 11.1x forward P/E. Read our free research report to see why you should think twice about including PGNY in your portfolio.
One Stock to Buy:
Lululemon (LULU)
Rolling One-Year Beta: 0.95
Originally serving yogis and hockey players, Lululemon (NASDAQ: LULU) is a designer, distributor, and retailer of athletic apparel for men and women.
Why Is LULU a Good Business?
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 5.3% over the past two years
- Collection of products is difficult to replicate at scale and leads to a best-in-class gross margin of 58.8%
- Robust free cash flow margin of 13.7% gives it many options for capital deployment
Lululemon is trading at $181.46 per share, or 14.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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-micro-cap company Tecnoglass (+1,754% 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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