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:
Portillo's (PTLO)
Rolling One-Year Beta: 0.81
Begun as a Chicago hot dog stand in 1963, Portillo’s (NASDAQ: PTLO) is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes.
Why Are We Hesitant About PTLO?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.4% for the last two years
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Portillo's is trading at $5.94 per share, or 24x forward P/E. Read our free research report to see why you should think twice about including PTLO in your portfolio.
Boston Beer (SAM)
Rolling One-Year Beta: 0.35
Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE: SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Why Does SAM Worry Us?
- Sales trends were unexciting over the last three years as its 1.6% annual growth was below the typical consumer staples company
- Subscale operations are evident in its revenue base of $2.05 billion, meaning it has fewer distribution channels than its larger rivals
- Forecasted revenue decline of 4.4% for the upcoming 12 months implies demand will fall off a cliff
At $218.67 per share, Boston Beer trades at 23.3x forward P/E. Check out our free in-depth research report to learn more about why SAM doesn’t pass our bar.
One Stock to Watch:
Abbott Laboratories (ABT)
Rolling One-Year Beta: 0.36
With roots dating back to 1888 when founder Dr. Wallace Abbott began producing precise, dosage-form medications, Abbott Laboratories (NYSE: ABT) develops and sells a diverse range of healthcare products including medical devices, diagnostics, nutrition products, and branded generic pharmaceuticals.
Why Are We Fans of ABT?
- Scale advantages are evident in its $43.84 billion revenue base, which provides operating leverage when demand is strong
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 9.6% exceeded its revenue gains over the last five years
- ABT is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Abbott Laboratories’s stock price of $128.97 implies a valuation ratio of 23.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum 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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