Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could succeed under all market conditions and two that may not deliver the returns you need.
Two Stocks to Sell:
Icahn Enterprises (IEP)
Rolling One-Year Beta: 0.82
Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.
Why Do We Think Twice About IEP?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.8% annually over the last two years
- High input costs result in an inferior gross margin of 8.5% that must be offset through higher volumes
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Icahn Enterprises’s stock price of $8.11 implies a valuation ratio of 0.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than IEP.
S&T Bancorp (STBA)
Rolling One-Year Beta: 0.89
Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp (NASDAQ: STBA) is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.
Why Does STBA Worry Us?
- Net interest income trends were unexciting over the last five years as its 4.3% annual growth was below the typical banking firm
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 6.2%
- 33.7 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the firm’s willingness to accept lower profitability to defend its market position
At $36.71 per share, S&T Bancorp trades at 0.9x forward P/B. To fully understand why you should be careful with STBA, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
United Parks & Resorts (PRKS)
Rolling One-Year Beta: 0.89
Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.
Why Could PRKS Be a Winner?
- Highly efficient business model is illustrated by its impressive 26.5% operating margin
- Share buybacks catapulted its annual earnings per share growth to 23.8%, which outperformed its revenue gains over the last five years
- Improving returns on capital reflect management’s ability to monetize investments
United Parks & Resorts is trading at $47.46 per share, or 9.8x forward P/E. Is now a good time to buy? Find out 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 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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