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. That said, here is one low-volatility stock that could offer consistent gains and two that may not keep up.
Two Stocks to Sell:
UFP Industries (UFPI)
Rolling One-Year Beta: 0.79
Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ: UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.
Why Is UFPI Risky?
- Declining unit sales over the past two years imply it may need to invest in improvements to get back on track
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Diminishing returns on capital suggest its earlier profit pools are drying up
UFP Industries is trading at $90.43 per share, or 15.1x forward P/E. Read our free research report to see why you should think twice about including UFPI in your portfolio.
CME Group (CME)
Rolling One-Year Beta: 0.15
Born from the Chicago Mercantile Exchange founded in 1898 as a butter and egg trading venue, CME Group (NASDAQ: CME) operates the world's largest derivatives marketplace where traders can buy and sell futures and options contracts across interest rates, equities, currencies, commodities, and more.
Why Does CME Worry Us?
- Sales trends were unexciting over the last five years as its 4.7% annual growth was below the typical financials company
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 8.6% annually
CME Group’s stock price of $263.43 implies a valuation ratio of 23.5x forward P/E. To fully understand why you should be careful with CME, check out our full research report (it’s free for active Edge members).
One Stock to Buy:
NMI Holdings (NMIH)
Rolling One-Year Beta: 0.66
Founded in the aftermath of the 2008 housing crisis to bring new capacity to the mortgage insurance market, NMI Holdings (NASDAQ: NMIH) provides mortgage insurance that protects lenders against losses when homebuyers default on their mortgage loans.
Why Should You Buy NMIH?
- 9.8% annualized net premiums earned expansion over the last two years exceeded the sector average as its policies appealed to customers
- Combined ratio improved by 14.4 percentage points over the last four years as it scaled
- Balance sheet strength has increased this cycle as its 16% annual book value per share growth over the last five years was exceptional
At $36.04 per share, NMI Holdings trades at 1.1x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 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-small-cap company Exlservice (+354% 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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