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. That said, here is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need.
Two Stocks to Sell:
Box (BOX)
Rolling One-Year Beta: 0.59
Founded in 2005 by Aaron Levie and Dylan Smith, Box (NYSE: BOX) provides organizations with software to securely store, share and collaborate around work documents in the cloud.
Why Are We Cautious About BOX?
- Sales trends were unexciting over the last three years as its 6.6% annual growth was well below the typical software company
- Estimated sales growth of 7.9% for the next 12 months is soft and implies weaker demand
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.5 percentage points
Box is trading at $33.08 per share, or 4.2x forward price-to-sales. To fully understand why you should be careful with BOX, check out our full research report (it’s free).
BD (BDX)
Rolling One-Year Beta: 0.33
With a history dating back to 1897 and a presence in virtually every hospital around the globe, Becton Dickinson (NYSE: BDX) develops and manufactures medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions and professionals worldwide.
Why Does BDX Worry Us?
- Annual sales growth of 4.1% over the last five years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Free cash flow margin dropped by 10.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Underwhelming 4.3% return on capital reflects management’s difficulties in finding profitable growth opportunities
BD’s stock price of $181.28 implies a valuation ratio of 12.1x forward P/E. Read our free research report to see why you should think twice about including BDX in your portfolio.
One Stock to Buy:
Costco (COST)
Rolling One-Year Beta: 0.58
Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ: COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.
Why Is COST a Top Pick?
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 5% over the past two years
- Enormous revenue base of $268.8 billion compensates for its low gross margin and provides significant leverage in supplier negotiations
- Industry-leading 34.2% return on capital demonstrates management’s skill in finding high-return investments
At $942.43 per share, Costco trades at 48.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2024, 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 9 Market-Beating Stocks. 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 Comfort Systems (+782% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
