Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two that may not keep up.
Two Stocks to Sell:
Coupang (CPNG)
Rolling One-Year Beta: 0.94
Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE: CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".
Why Is CPNG Not Exciting?
- Bad unit economics and steep infrastructure costs are reflected in its low gross margin of 28%
- Poor free cash flow margin of 4.4% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $27.09 per share, Coupang trades at 28.1x forward EV/EBITDA. Read our free research report to see why you should think twice about including CPNG in your portfolio.
Waste Management (WM)
Rolling One-Year Beta: 0.22
Headquartered in Houston, Waste Management (NYSE: WM) is a provider of comprehensive waste management services in North America.
Why Does WM Give Us Pause?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 7.2% for the last two years
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6 percentage points
Waste Management is trading at $232.04 per share, or 30.3x forward P/E. If you’re considering WM for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Cal-Maine (CALM)
Rolling One-Year Beta: 0.49
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ: CALM) produces, packages, and distributes eggs.
Why Do We Like CALM?
- Impressive 35.3% annual revenue growth over the last three years indicates it's winning market share
- Additional sales over the last three years increased its profitability as the 280% annual growth in its earnings per share outpaced its revenue
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
Cal-Maine’s stock price of $96.05 implies a valuation ratio of 9.2x forward P/E. Is now the right time to buy? 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 9 Market-Beating Stocks. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
