Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could offer consistent gains and two that may not keep up.
Two Stocks to Sell:
Workiva (WK)
Rolling One-Year Beta: 0.70
Nicknamed "the Excel killer" by some finance professionals for its ability to eliminate spreadsheet chaos, Workiva (NYSE: WK) provides a cloud-based platform that enables organizations to streamline financial reporting, ESG, and compliance processes with connected data and automation.
Why Does WK Give Us Pause?
- Operating margin was unchanged over the last year, suggesting it failed to gain leverage on its fixed costs
- Projected 1.9 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
Workiva’s stock price of $89.19 implies a valuation ratio of 5.3x forward price-to-sales. Check out our free in-depth research report to learn more about why WK doesn’t pass our bar.
TreeHouse Foods (THS)
Rolling One-Year Beta: 0.68
Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE: THS) produces a wide range of private-label foods for grocery and food service customers.
Why Do We Avoid THS?
- Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 16.5% that must be offset through higher volumes
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $19.31 per share, TreeHouse Foods trades at 10.3x forward P/E. Dive into our free research report to see why there are better opportunities than THS.
One Stock to Buy:
Insulet (PODD)
Rolling One-Year Beta: 0.78
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
Why Should You Buy PODD?
- Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 26.4% over the past two years
- Free cash flow margin grew by 25.4 percentage points over the last five years, giving the company more chips to play with
- Rising returns on capital show management is finding more attractive investment opportunities
Insulet is trading at $322.11 per share, or 64.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
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 Kadant (+351% 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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