Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here are two low-volatility stocks that could offer consistent gains and one stuck in limbo.
One Stock to Sell:
Evolent Health (EVH)
Rolling One-Year Beta: -0.40
Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE: EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.
Why Does EVH Worry Us?
- Forecasted revenue decline of 4.2% for the upcoming 12 months implies demand will fall off a cliff
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Push for growth has led to negative returns on capital, signaling value destruction
Evolent Health is trading at $7.53 per share, or 14.5x forward P/E. To fully understand why you should be careful with EVH, check out our full research report (it’s free for active Edge members).
Two Stocks to Buy:
Rollins (ROL)
Rolling One-Year Beta: 0.39
Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE: ROL) provides pest and wildlife control services to residential and commercial customers.
Why Will ROL Outperform?
- Impressive 11.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Offerings are mission-critical for businesses and lead to a best-in-class gross margin of 52.2%
- Strong free cash flow margin of 16.4% enables it to reinvest or return capital consistently
Rollins’s stock price of $55.82 implies a valuation ratio of 47.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
1st Source (SRCE)
Rolling One-Year Beta: 0.92
Tracing its roots back to 1863 during the Civil War era, 1st Source Corporation (NASDAQ: SRCE) is a regional bank holding company that provides commercial, consumer, specialty finance, and wealth management services across Indiana, Michigan, and Florida.
Why Is SRCE a Top Pick?
- Net interest margin grew by 29 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more chips to play with
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 7.9% outpaced its revenue gains
- Annual tangible book value per share growth of 8.3% over the last five years was superb and indicates its capital strength increased during this cycle
At $57.98 per share, 1st Source trades at 1.1x forward P/B. Is now a good time to buy? Find out in our full 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).
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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