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1 Safe-and-Steady Stock with Exciting Potential and 2 to Question

NATR Cover Image

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. That said, here is one low-volatility stock that could offer consistent gains and two stuck in limbo.

Two Stocks to Sell:

Nature's Sunshine (NATR)

Rolling One-Year Beta: 0.77

Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.

Why Are We Cautious About NATR?

  1. Flat sales over the last three years suggest it must innovate and find new ways to grow
  2. Modest revenue base of $456.6 million gives it less fixed cost leverage and fewer distribution channels than larger companies
  3. Earnings per share fell by 20.6% annually over the last three years while its revenue was flat, showing each sale was less profitable

Nature's Sunshine’s stock price of $14.13 implies a valuation ratio of 18.5x forward P/E. To fully understand why you should be careful with NATR, check out our full research report (it’s free).

KB Home (KBH)

Rolling One-Year Beta: 0.45

The first homebuilder to be listed on the NYSE, KB Home (NYSE: KB) is a homebuilding company targeting the first-time home buyer and move-up buyer markets.

Why Do We Avoid KBH?

  1. Backlog has dropped by 22.9% on average over the past two years, suggesting it’s losing orders as competition picks up
  2. Earnings per share have dipped by 5.3% annually over the past two years, which is concerning because stock prices follow EPS over the long term
  3. Free cash flow margin dropped by 5.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $52.29 per share, KB Home trades at 6.6x forward P/E. Check out our free in-depth research report to learn more about why KBH doesn’t pass our bar.

One Stock to Buy:

UnitedHealth (UNH)

Rolling One-Year Beta: 0.32

With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.

Why Is UNH a Top Pick?

  1. Massive revenue base of $410.1 billion gives it meaningful leverage when negotiating reimbursement rates
  2. Share buybacks catapulted its annual earnings per share growth to 13.1%, which outperformed its revenue gains over the last five years
  3. ROIC punches in at 21.6%, illustrating management’s expertise in identifying profitable investments

UnitedHealth is trading at $300.85 per share, or 9.7x forward P/E. Is now the time to initiate a position? 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 5 Growth Stocks for this month. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

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