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 is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need.
Two Stocks to Sell:
Akamai Technologies (AKAM)
Rolling One-Year Beta: 0.78
With a massive distributed network spanning 4,100+ points of presence in nearly 130 countries, Akamai Technologies (NASDAQ: AKAM) provides a global distributed cloud platform that helps businesses deliver, secure, and optimize their digital experiences online.
Why Do We Pass on AKAM?
- Sales trends were unexciting over the last three years as its 4.6% annual growth was well below the typical software company
- Sky-high servicing costs result in an inferior gross margin of 59.1% that must be offset through increased usage
- Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
Akamai Technologies is trading at $78.21 per share, or 2.7x forward price-to-sales. Read our free research report to see why you should think twice about including AKAM in your portfolio.
Artivion (AORT)
Rolling One-Year Beta: 0.84
Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE: AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease.
Why Do We Think Twice About AORT?
- Subscale operations are evident in its revenue base of $405 million, meaning it has fewer distribution channels than its larger rivals
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- ROIC of 2.1% reflects management’s challenges in identifying attractive investment opportunities
At $43.93 per share, Artivion trades at 58.8x forward P/E. If you’re considering AORT for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
KBR (KBR)
Rolling One-Year Beta: 0.84
Known for projects like the construction of Guantanamo Bay, KBR provides professional services and technologies, specializing in engineering, construction, and government services sectors.
Why Are We Fans of KBR?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 9.9% annual sales growth over the last two years
- Operating margin expanded by 6.3 percentage points over the last five years as it scaled and became more efficient
- Share repurchases over the last five years enabled its annual earnings per share growth of 16.6% to outpace its revenue gains
KBR’s stock price of $50.46 implies a valuation ratio of 13.2x forward P/E. Is now a good time to buy? Find out 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-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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