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. Keeping that in mind, here is one low-volatility stock that could succeed under all market conditions and two stuck in limbo.
Two Stocks to Sell:
AXIS Capital (AXS)
Rolling One-Year Beta: 0.59
Founded in the aftermath of the 9/11 attacks when insurance capacity was scarce, AXIS Capital Holdings Limited (NYSE: AXS) is a global specialty insurer and reinsurer that provides coverage for complex risks across property, liability, professional lines, cyber, and other specialty markets.
Why Does AXS Give Us Pause?
- Annual revenue growth of 4.9% over the last five years was below our standards for the insurance sector
- Growth in insurance policies was lackluster over the last two years as its 3.4% annual growth underperformed the typical financial institution
- ROE of 9.7% reflects management’s challenges in identifying attractive investment opportunities
At $95.25 per share, AXIS Capital trades at 1.3x forward P/B. Check out our free in-depth research report to learn more about why AXS doesn’t pass our bar.
Franklin BSP Realty Trust (FBRT)
Rolling One-Year Beta: 0.45
Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE: FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.
Why Are We Hesitant About FBRT?
- Sales tumbled by 3.7% annually over the last two years, showing market trends are working against its favor during this cycle
- Sales were less profitable over the last two years as its earnings per share fell by 54.5% annually, worse than its revenue declines
- Tangible book value per share tumbled by 2.9% annually over the last five years, showing banking sector trends are working against its favor during this cycle
Franklin BSP Realty Trust’s stock price of $11.17 implies a valuation ratio of 0.8x forward P/B. To fully understand why you should be careful with FBRT, check out our full research report (it’s free).
One Stock to Buy:
Stride (LRN)
Rolling One-Year Beta: 0.35
Formerly known as K12, Stride (NYSE: LRN) is an education technology company providing education solutions through digital platforms.
Why Is LRN a Good Business?
- Increase in enrollments shows customers are eagerly embracing its offerings
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 56.8% outpaced its revenue gains
- Free cash flow margin grew by 8.6 percentage points over the last five years, giving the company more chips to play with
Stride is trading at $161.16 per share, or 20.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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-micro-cap company Kadant (+351% 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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