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.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock providing safe-and-steady growth and two that may not deliver the returns you need.
Two Stocks to Sell:
Hormel Foods (HRL)
Rolling One-Year Beta: 0.10
Best known for its SPAM brand, Hormel (NYSE: HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads.
Why Is HRL Not Exciting?
- Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Gross margin of 16.6% is an output of its commoditized products
- Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 7% annually, worse than its revenue
Hormel Foods is trading at $25.02 per share, or 14.1x forward P/E. Read our free research report to see why you should think twice about including HRL in your portfolio.
Reinsurance Group of America (RGA)
Rolling One-Year Beta: 0.79
Operating behind the scenes of the insurance industry since 1973, Reinsurance Group of America (NYSE: RGA) provides life and health reinsurance services to insurance companies, helping them manage risk and meet regulatory requirements.
Why Do We Think Twice About RGA?
- Book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle
- Estimated book value per share growth of 1.4% for the next 12 months implies profitability will slow from its two-year trend
- Low return on equity reflects management’s struggle to allocate funds effectively
Reinsurance Group of America’s stock price of $194.71 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with RGA, check out our full research report (it’s free).
One Stock to Watch:
AbbVie (ABBV)
Rolling One-Year Beta: 0.36
Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.
Why Could ABBV Be a Winner?
- Unparalleled scale of $58.33 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
- ABBV is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $211.22 per share, AbbVie trades at 16.1x 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
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 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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