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:
Tennant (TNC)
Rolling One-Year Beta: 0.90
As the world’s largest manufacturer of autonomous mobile robots, Tennant (NYSE: TNC) designs, manufactures, and sells cleaning products to various sectors.
Why Should You Dump TNC?
- 3% annual revenue growth over the last two years was slower than its industrials peers
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 2.1% annually while its revenue grew
- Free cash flow margin dropped by 4.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Tennant’s stock price of $80.34 implies a valuation ratio of 13.1x forward P/E. To fully understand why you should be careful with TNC, check out our full research report (it’s free).
Greenbrier (GBX)
Rolling One-Year Beta: 0.89
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE: GBX) supplies the freight rail transportation industry with railcars and related services.
Why Are We Hesitant About GBX?
- Annual sales declines of 4.5% for the past two years show its products and services struggled to connect with the market during this cycle
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 13.5%
- Negative free cash flow raises questions about the return timeline for its investments
Greenbrier is trading at $45.06 per share, or 4.7x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including GBX in your portfolio.
One Stock to Buy:
Remitly (RELY)
Rolling One-Year Beta: 0.82
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Will RELY Outperform?
- Active Customers have grown by 34.5% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Additional sales over the last three years increased its profitability as the 76.4% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 33.7 percentage points over the last few years, giving the company more capital to invest or return to shareholders
At $18.80 per share, Remitly trades at 17.6x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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