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. That said, here is one low-volatility stock that could offer consistent gains and two that may not keep up.
Two Stocks to Sell:
Levi's (LEVI)
Rolling One-Year Beta: 0.94
Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE: LEVI) is an apparel company renowned for its iconic denim products and classic American style.
Why Are We Out on LEVI?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.1%
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Levi’s stock price of $20.13 implies a valuation ratio of 13.9x forward P/E. If you’re considering LEVI for your portfolio, see our FREE research report to learn more.
MGIC Investment (MTG)
Rolling One-Year Beta: 0.71
Founded in 1957 when the modern mortgage insurance industry was in its infancy, MGIC Investment (NYSE: MTG) provides private mortgage insurance that protects lenders when homebuyers default on their loans, enabling borrowers to purchase homes with smaller down payments.
Why Does MTG Worry Us?
- Net premiums earned contracted by 1.1% annually over the last five years, showing unfavorable market dynamics this cycle
- Anticipated sales growth of 2.5% for the next year implies demand will be shaky
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 11.7% annually
At $27.95 per share, MGIC Investment trades at 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than MTG.
One Stock to Watch:
UnitedHealth (UNH)
Rolling One-Year Beta: 0.33
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
Why Are We Positive On UNH?
- 11.5% annual revenue growth over the last five years was better than the sector average, highlighting the value of its products and services
- Unparalleled scale of $435.2 billion in revenue enables it to spread administrative costs across a larger membership base
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
UnitedHealth is trading at $327.34 per share, or 19.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at 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 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 Comfort Systems (+782% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
