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. Keeping that in mind, here are two low-volatility stocks that could offer consistent gains and one that may not keep up.
One Stock to Sell:
Fresh Del Monte Produce (FDP)
Rolling One-Year Beta: 0.15
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE: FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Why Do We Think FDP Will Underperform?
- Products fail to spark excitement with consumers, as seen in its flat sales over the last three years
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 8.3%
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $36.87 per share, Fresh Del Monte Produce trades at 16.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than FDP.
Two Stocks 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 Should OLLI Be on Your Watchlist?
- Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
- 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 14.2% projected revenue growth implies demand will accelerate from its six-year trend
Ollie’s stock price of $135.24 implies a valuation ratio of 35.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Target Hospitality (TH)
Rolling One-Year Beta: 0.46
Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ: TH) is a provider of specialty workforce lodging accommodations and services.
Why Do We Watch TH?
- Healthy operating margin of 25.9% shows it’s a well-run company with efficient processes
- Robust free cash flow margin of 23% gives it many options for capital deployment
- Rising returns on capital show management is finding more attractive investment opportunities
Target Hospitality is trading at $8.06 per share, or 32x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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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