A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need.
Two Stocks to Sell:
Mission Produce (AVO)
Rolling One-Year Beta: 0.82
Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.
Why Do We Steer Clear of AVO?
- Subscale operations are evident in its revenue base of $1.39 billion, meaning it has fewer distribution channels than its larger rivals
- Forecasted revenue decline of 15% for the upcoming 12 months implies demand will fall off a cliff
- Gross margin of 10.9% is below its competitors, leaving less money to invest in areas like marketing and production facilities
Mission Produce is trading at $12.40 per share, or 15.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than AVO.
ADT (ADT)
Rolling One-Year Beta: 0.60
Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE: ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection.
Why Does ADT Worry Us?
- Number of customers has disappointed over the past two years, indicating weak demand for its offerings
- Projected sales growth of 3.6% for the next 12 months suggests sluggish demand
- ROIC of 5.7% reflects management’s challenges in identifying attractive investment opportunities
ADT’s stock price of $8.28 implies a valuation ratio of 9.6x forward P/E. Read our free research report to see why you should think twice about including ADT in your portfolio.
One Stock to Buy:
Cal-Maine (CALM)
Rolling One-Year Beta: 0.69
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ: CALM) produces, packages, and distributes eggs.
Why Is CALM a Top Pick?
- Remarkable 33.9% revenue growth over the last three years demonstrates its ability to capture significant market share
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 110% over the last three years outstripped its revenue performance
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
At $107.60 per share, Cal-Maine trades at 7.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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 Exlservice (+354% 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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