Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. 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:
Comcast (CMCSA)
Rolling One-Year Beta: 0.40
Formerly known as American Cable Systems, Comcast (NASDAQ: CMCSA) is a multinational telecommunications company offering a wide range of services.
Why Do We Steer Clear of CMCSA?
- Performance surrounding its domestic broadband customers has lagged its peers
- Demand will likely fall over the next 12 months as Wall Street expects flat revenue
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Comcast’s stock price of $35.44 implies a valuation ratio of 8.1x forward P/E. Check out our free in-depth research report to learn more about why CMCSA doesn’t pass our bar.
Collegium Pharmaceutical (COLL)
Rolling One-Year Beta: 0.02
Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ: COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.
Why Do We Think Twice About COLL?
- Smaller revenue base of $664.3 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Free cash flow margin dropped by 6.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Eroding returns on capital suggest its historical profit centers are aging
At $32.49 per share, Collegium Pharmaceutical trades at 4.3x forward P/E. To fully understand why you should be careful with COLL, check out our full research report (it’s free).
One Stock to Watch:
OFG Bancorp (OFG)
Rolling One-Year Beta: 0.94
Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE: OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands.
Why Are We Positive On OFG?
- Annual net interest income growth of 10.3% over the last four years beat the sector average and underscores the value of its loans
- Non-interest operating profits and efficiency rose over the last four years as it benefited from some fixed cost leverage
- Share buybacks catapulted its annual earnings per share growth to 6.7%, which outperformed its revenue gains over the last two years
OFG Bancorp is trading at $44.53 per share, or 1.5x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 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 Kadant (+351% 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
