Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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 succeed under all market conditions and two that may not keep up.
Two Stocks to Sell:
Pilgrim's Pride (PPC)
Rolling One-Year Beta: 0.33
Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ: PPC) produces, processes, and distributes chicken products to retailers and food service customers.
Why Is PPC Not Exciting?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.5% over the last three years was below our standards for the consumer staples sector
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 10.7% that must be offset through higher volumes
At $47.90 per share, Pilgrim's Pride trades at 9.9x forward P/E. To fully understand why you should be careful with PPC, check out our full research report (it’s free).
AMC Entertainment (AMC)
Rolling One-Year Beta: 0.73
With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE: AMC) operates movie theaters primarily in the US and Europe.
Why Does AMC Fall Short?
- Products and services have few die-hard fans as sales have declined by 2.7% annually over the last five years
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
AMC Entertainment’s stock price of $3.47 implies a valuation ratio of 2.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than AMC.
One Stock to Watch:
Molina Healthcare (MOH)
Rolling One-Year Beta: -0.14
Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE: MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.
Why Are We Fans of MOH?
- Annual revenue growth of 19.4% over the past five years was outstanding, reflecting market share gains this cycle
- Economies of scale give it fixed cost leverage when sales grow as well as negotiating power over membership pricing and reimbursement rates
- Earnings per share have massively outperformed its peers over the last five years, increasing by 14.6% annually
Molina Healthcare is trading at $300 per share, or 11.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. 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.
