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.
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 providing safe-and-steady growth and one that may not deliver the returns you need.
One Stock to Sell:
TFS Financial (TFSL)
Rolling One-Year Beta: 0.56
Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial (NASDAQ: TFSL) is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.
Why Should You Dump TFSL?
- Net interest income trends were unexciting over the last five years as its 2.8% annual growth was below the typical banking firm
- Net interest margin of 1.7% is well below other banks, signaling its loans aren’t very profitable
- Flat tangible book value per share over the last two years suggest it must find different ways to enhance shareholder value during this cycle
TFS Financial’s stock price of $14.06 implies a valuation ratio of 2.1x forward P/B. To fully understand why you should be careful with TFSL, check out our full research report (it’s free).
Two Stocks to Watch:
Lennox (LII)
Rolling One-Year Beta: 0.90
Based in Texas and founded over a century ago, Lennox (NYSE: LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.
Why Does LII Stand Out?
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 16.3%, and its operating leverage amplified its profits over the last five years
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 22.2% annually
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $567.63 per share, Lennox trades at 23.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Rocket Companies (RKT)
Rolling One-Year Beta: -0.10
Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE: RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform.
Why Is RKT on Our Radar?
- Market share will likely rise over the next 12 months as its expected net interest income growth of 47.8% is robust
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Rocket Companies is trading at $18.99 per share, or 3.5x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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 Tecnoglass (+1,754% 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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