Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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 succeed under all market conditions and two stuck in limbo.
Two Stocks to Sell:
Hartford (HIG)
Rolling One-Year Beta: 0.59
Recognizable by its iconic stag logo that dates back to 1810, The Hartford (NYSE: HIG) provides property and casualty insurance, group benefits, and investment products to individuals and businesses across the United States.
Why Are We Hesitant About HIG?
- Outsized scale creates growth headwinds as its 6.2% annualized net premiums earned increases over the last five years underperformed other financial institutions
- Sales are projected to tank by 15% over the next 12 months as demand evaporates
- Scale is a double-edged sword because it limits the firm’s capital growth potential compared to its smaller competitors, as reflected in its below-average annual book value per share increases of 5.4% for the last five years
Hartford is trading at $132.22 per share, or 2.1x forward P/B. Read our free research report to see why you should think twice about including HIG in your portfolio.
Prosperity Bancshares (PB)
Rolling One-Year Beta: 0.77
With a network of banking centers spanning the Lone Star State and beyond, Prosperity Bancshares (NYSE: PB) operates full-service banking locations throughout Texas and Oklahoma, offering a wide range of financial products and services to businesses and consumers.
Why Does PB Fall Short?
- Net interest income stagnated over the last five years and signal the need for new growth strategies
- Net interest margin of 3% is well below other banks, signaling its loans aren’t very profitable
- Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
Prosperity Bancshares’s stock price of $69.34 implies a valuation ratio of 0.8x forward P/B. If you’re considering PB for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Cintas (CTAS)
Rolling One-Year Beta: 0.85
Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.
Why Will CTAS Beat the Market?
- 8.3% annual revenue growth over the last two years surpassed the sector average as its services resonated with customers
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Strong free cash flow margin of 16.5% enables it to reinvest or return capital consistently
At $208.54 per share, Cintas trades at 42.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 6 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 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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