Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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 offer consistent gains and two that may not keep up.
Two Stocks to Sell:
Sherwin-Williams (SHW)
Rolling One-Year Beta: 0.71
Widely known for its success in the paint industry, Sherwin-Williams (NYSE: SHW) is a manufacturer of paints, coatings, and related products.
Why Is SHW Risky?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2.3%
- 7.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
At $333.31 per share, Sherwin-Williams trades at 27.9x forward P/E. Dive into our free research report to see why there are better opportunities than SHW.
ICU Medical (ICUI)
Rolling One-Year Beta: 0.60
Founded in 1984 and named for its initial focus on intensive care units, ICU Medical (NASDAQ: ICUI) develops and manufactures medical products for infusion therapy, vascular access, and vital care applications used in hospitals and other healthcare settings.
Why Do We Think ICUI Will Underperform?
- Sales trends were unexciting over the last two years as its 1.7% annual growth was below the typical healthcare company
- Sales are projected to tank by 10.6% over the next 12 months as demand evaporates
- Earnings per share fell by 19.1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
ICU Medical’s stock price of $113.63 implies a valuation ratio of 16.9x forward P/E. Check out our free in-depth research report to learn more about why ICUI doesn’t pass our bar.
One Stock to Watch:
Tractor Supply (TSCO)
Rolling One-Year Beta: 0.62
Started as a mail-order tractor parts business, Tractor Supply (NASDAQ: TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.
Why Are We Positive On TSCO?
- Bold push to open new stores demonstrates an ambitious strategy to establish itself in underpenetrated territories
- Estimated revenue growth of 6.8% for the next 12 months implies its momentum over the last six years will continue
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Tractor Supply is trading at $53.72 per share, or 24.2x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our 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).
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