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.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here are two low-volatility stocks that could offer consistent gains and one that may not deliver the returns you need.
One Healthcare Stock to Sell:
CooperCompanies (COO)
Rolling One-Year Beta: 0.43
With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ: COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services.
Why Does COO Fall Short?
- Performance over the past five years was negatively impacted by new share issuances as its earnings per share grew slower than its revenue
- Low returns on capital reflect management’s struggle to allocate funds effectively
CooperCompanies is trading at $82.32 per share, or 20.3x forward P/E. Read our free research report to see why you should think twice about including COO in your portfolio.
Two Healthcare Stocks to Watch:
Amgen (AMGN)
Rolling One-Year Beta: 0.35
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Why Do We Like AMGN?
- 14.1% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Economies of scale give it more fixed cost leverage than its smaller competitors
- Strong free cash flow margin of 31% enables it to reinvest or return capital consistently
Amgen’s stock price of $271.80 implies a valuation ratio of 13x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Humana (HUM)
Rolling One-Year Beta: 0.85
With over 80% of its revenue derived from federal government contracts, Humana (NYSE: HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Why Are We Fans of HUM?
- 12.2% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
- Unparalleled scale of $120.2 billion in revenue enables it to spread administrative costs across a larger membership base
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
At $239.70 per share, Humana trades at 15.9x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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 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 176% over the last five years.
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.
