Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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 succeed under all market conditions and two that may not deliver the returns you need.
Two Stocks to Sell:
Alamo (ALG)
Rolling One-Year Beta: 0.76
Expanding its markets through acquisitions since its founding, Alamo (NSYE:ALG) designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use.
Why Does ALG Worry Us?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.3% annually over the last two years
- High input costs result in an inferior gross margin of 25.5% that must be offset through higher volumes
- Earnings per share have dipped by 5.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term
At $162.49 per share, Alamo trades at 14.5x forward P/E. Read our free research report to see why you should think twice about including ALG in your portfolio.
UFP Technologies (UFPT)
Rolling One-Year Beta: 0.92
With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ: UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.
Why Do We Think Twice About UFPT?
- Revenue base of $598 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Estimated sales growth of 4.6% for the next 12 months implies demand will slow from its two-year trend
UFP Technologies’s stock price of $209.94 implies a valuation ratio of 21.4x forward P/E. To fully understand why you should be careful with UFPT, check out our full research report (it’s free for active Edge members).
One Stock to Buy:
Chipotle (CMG)
Rolling One-Year Beta: 0.88
Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE: CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.
Why Is CMG a Good Business?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Same-store sales growth over the past two years shows it’s successfully drawing diners into its restaurants
- Massive revenue base of $11.79 billion makes it a household name that influences purchasing decisions
Chipotle is trading at $33.74 per share, or 28.8x 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
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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 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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