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. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two stuck in limbo.
Two Stocks to Sell:
Kimberly-Clark (KMB)
Rolling One-Year Beta: 0.19
Originally founded as a Wisconsin paper mill in 1872, Kimberly-Clark (NYSE: KMB) is now a household products powerhouse known for personal care and tissue products.
Why Is KMB Not Exciting?
- Flat unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Free cash flow margin has stayed in place over the last year
Kimberly-Clark is trading at $130.11 per share, or 17.3x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than KMB.
Revvity (RVTY)
Rolling One-Year Beta: 0.69
Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE: RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.
Why Do We Think RVTY Will Underperform?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 8.8 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $92.67 per share, Revvity trades at 18x forward price-to-earnings. Read our free research report to see why you should think twice about including RVTY in your portfolio.
One Stock to Buy:
QuinStreet (QNST)
Rolling One-Year Beta: 0.82
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Is QNST a Good Business?
- Annual revenue growth of 27.1% over the last two years was superb and indicates its market share increased during this cycle
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Earnings per share have massively outperformed its peers over the last two years, increasing by 99.4% annually
QuinStreet’s stock price of $17.52 implies a valuation ratio of 17.8x forward price-to-earnings. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
