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.
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 providing safe-and-steady growth and two that may not keep up.
Two Stocks to Sell:
ASGN (ASGN)
Rolling One-Year Beta: 0.65
Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, ASGN (NYSE: ASGN) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.
Why Do We Think ASGN Will Underperform?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.8% annually over the last two years
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.8% annually
At $50.14 per share, ASGN trades at 10.7x forward P/E. To fully understand why you should be careful with ASGN, check out our full research report (it’s free).
Mercury General (MCY)
Rolling One-Year Beta: 1.00
Founded in 1961 and maintaining a network of over 6,300 independent agents across the country, Mercury General (NYSE: MCY) is an insurance company that primarily sells automobile insurance policies through independent agents in 11 states, with a strong focus on California.
Why Are We Hesitant About MCY?
- Day-to-day expenses have swelled relative to revenue over the last four years as its combined ratio increased by 7.5 percentage points
- Annual book value per share growth of 1.6% over the last five years was below our standards for the insurance sector
- ROE of 7% reflects management’s challenges in identifying attractive investment opportunities
Mercury General is trading at $69.25 per share, or 1.9x forward P/B. Read our free research report to see why you should think twice about including MCY in your portfolio.
One Stock to Buy:
UnitedHealth (UNH)
Rolling One-Year Beta: 0.03
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
Why Will UNH Outperform?
- Dominant market position is represented by its $422.8 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
UnitedHealth’s stock price of $250 implies a valuation ratio of 11.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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
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