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:
Fastenal (FAST)
Rolling One-Year Beta: 0.71
Founded in 1967, Fastenal (NASDAQ: FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.
Why Do We Think Twice About FAST?
- Annual revenue growth of 3.6% over the last two years was below our standards for the industrials sector
- Earnings per share lagged its peers over the last two years as they only grew by 2.8% annually
- Free cash flow margin dropped by 4.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Fastenal is trading at $50 per share, or 46.2x forward P/E. To fully understand why you should be careful with FAST, check out our full research report (it’s free).
Arbor Realty Trust (ABR)
Rolling One-Year Beta: 0.73
With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust (NYSE: ABR) is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.
Why Should You Dump ABR?
- Sales tumbled by 8.7% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Loan losses and capital returns have eroded its tangible book value per share this cycle as its tangible book value per share declined by 3.3% annually over the last two years
Arbor Realty Trust’s stock price of $11.84 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than ABR.
One Stock to Watch:
W. R. Berkley (WRB)
Rolling One-Year Beta: 0.45
Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE: WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.
Why Should WRB Be on Your Watchlist?
- Market penetration was impressive this cycle as its net premiums earned expanded by 12.7% annually over the last five years
- Share repurchases over the last five years enabled its annual earnings per share growth of 32% to outpace its revenue gains
- Capital strength is on track to rise over the next 12 months as its 28.2% projected book value per share growth implies profitability will accelerate from its two-year trend
At $72.15 per share, W. R. Berkley trades at 2.8x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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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