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.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. That said, here is one low-volatility stock that could offer consistent gains and two that may not keep up.
Two Stocks to Sell:
Inspire Medical Systems (INSP)
Rolling One-Year Beta: 0.57
Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE: INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.
Why Does INSP Fall Short?
- Modest revenue base of $882.6 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Negative returns on capital show management lost money while trying to expand the business
Inspire Medical Systems is trading at $83.43 per share, or 50.9x forward P/E. To fully understand why you should be careful with INSP, check out our full research report (it’s free for active Edge members).
Prudential (PRU)
Rolling One-Year Beta: 0.88
Recognized by its iconic Rock of Gibraltar logo symbolizing strength and stability since 1896, Prudential Financial (NYSE: PRU) provides life insurance, annuities, retirement solutions, investment management, and other financial services to individual and institutional customers globally.
Why Do We Think PRU Will Underperform?
- 3.1% annual declines in net premiums earned for the past five years indicates policy sales struggled this cycle
- Annual book value per share declines of 11.3% for the past five years show its capital management struggled during this cycle
- High debt-to-equity ratio of 1.3× shows the firm carries too much debt relative to shareholder equity, increasing bankruptcy risk
Prudential’s stock price of $103.56 implies a valuation ratio of 1.1x forward P/B. Read our free research report to see why you should think twice about including PRU in your portfolio.
One Stock to Buy:
McKesson (MCK)
Rolling One-Year Beta: -0.04
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Are We Backing MCK?
- 15.3% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Massive revenue base of $387.1 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.3% exceeded its revenue gains over the last five years
At $854.77 per share, McKesson trades at 20.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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