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. Keeping that in mind, here are two low-volatility stocks providing safe-and-steady growth and one that may not deliver the returns you need.
One Stock to Sell:
Medifast (MED)
Rolling One-Year Beta: 0.82
Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE: MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.
Why Do We Think MED Will Underperform?
- Products aren't resonating with the market as its revenue declined by 33.9% annually over the last three years
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
- Free cash flow margin dropped by 7.6 percentage points over the last year, implying the company became more capital intensive as competition picked up
Medifast is trading at $13.95 per share, or 0.4x forward price-to-sales. Read our free research report to see why you should think twice about including MED in your portfolio.
Two Stocks to Watch:
ResMed (RMD)
Rolling One-Year Beta: 0.76
Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE: RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.
Why Could RMD Be a Winner?
- Constant currency growth averaged 10.3% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 14.9% over the last five years outstripped its revenue performance
- Free cash flow margin jumped by 12.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $281.38 per share, ResMed trades at 27.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Primerica (PRI)
Rolling One-Year Beta: 0.85
With a sales force of over 140,000 licensed representatives operating on an independent contractor model, Primerica (NYSE: PRI) provides term life insurance, investment products, and other financial services to middle-income households in the United States and Canada.
Why Does PRI Catch Our Eye?
- Pre-tax profits increased over the last four years as the company gained some leverage on its fixed costs and became more efficient
- Share buybacks propelled its annual earnings per share growth to 18.2%, which outperformed its revenue gains over the last five years
- Industry-leading 26.7% return on equity demonstrates management’s skill in finding high-return investments
Primerica’s stock price of $277.43 implies a valuation ratio of 3.8x forward P/B. Is now a good time to buy? See for yourself in our comprehensive 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 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-small-cap company Exlservice (+354% 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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