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 succeed under all market conditions and two that may not deliver the returns you need.
Two Stocks to Sell:
Medifast (MED)
Rolling One-Year Beta: 0.22
Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE: MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.
Why Should You Dump MED?
- Products aren't resonating with the market as its revenue declined by 30.3% annually over the last three years
- Operating margin declined by 10.2 percentage points over the last year as its sales cratered
- Earnings per share have contracted by 27% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance
Medifast’s stock price of $13.16 implies a valuation ratio of 0.4x forward price-to-sales. To fully understand why you should be careful with MED, check out our full research report (it’s free).
Interface (TILE)
Rolling One-Year Beta: 0.77
Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ: TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions.
Why Are We Out on TILE?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 3.5% annually
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $20.97 per share, Interface trades at 7.6x forward EV-to-EBITDA. If you’re considering TILE for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Ollie's (OLLI)
Rolling One-Year Beta: 0.74
Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet (NASDAQ: OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts.
Why Is OLLI on Our Radar?
- Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
- Same-store sales growth averaged 4.1% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Market share is on track to rise over the next 12 months as its 14.1% projected revenue growth implies demand will accelerate from its six-year trend
Ollie's is trading at $112.16 per share, or 29.7x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% 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.
