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 that may not deliver the returns you need.
Two Stocks to Sell:
Calavo (CVGW)
Rolling One-Year Beta: 0.89
A trailblazer in the avocado industry, Calavo Growers (NASDAQ: CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products.
Why Do We Steer Clear of CVGW?
- Annual revenue declines of 15.8% over the last three years indicate problems with its market positioning
- Projected sales decline of 1.8% over the next 12 months indicates demand will continue deteriorating
- Gross margin of 10.5% is an output of its commoditized products
Calavo’s stock price of $26.66 implies a valuation ratio of 14x forward P/E. To fully understand why you should be careful with CVGW, check out our full research report (it’s free).
Repligen (RGEN)
Rolling One-Year Beta: 0.95
With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ: RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.
Why Is RGEN Risky?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 16.9 percentage points
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $114.32 per share, Repligen trades at 59x forward P/E. If you’re considering RGEN for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
MercadoLibre (MELI)
Rolling One-Year Beta: 0.87
Originally started as an online auction platform, MercadoLibre (NASDAQ: MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
Why Is MELI a Good Business?
- Unique Active Buyers have grown by 20.8% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Grip over its ecosystem is highlighted by its ability to grow engagement while increasing the average revenue per user by 15.4% annually
- Robust free cash flow margin of 31.1% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
MercadoLibre is trading at $2,319 per share, or 23.3x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Trump’s April 2024 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 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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