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. 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:
Hologic (HOLX)
Rolling One-Year Beta: -0.04
As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ: HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness.
Why Does HOLX Fall Short?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 23.6 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
At $66.92 per share, Hologic trades at 15.3x forward P/E. Read our free research report to see why you should think twice about including HOLX in your portfolio.
Stewart Information Services (STC)
Rolling One-Year Beta: 0.72
Founded in 1893 during America's westward expansion when property records were often disputed, Stewart Information Services (NYSE: STC) provides title insurance and real estate services, helping homebuyers, sellers, and lenders verify property ownership and protect against title defects.
Why Are We Hesitant About STC?
- 1.3% annual net premiums earned growth over the last two years was slower than its insurance peers
- Earnings per share fell by 1% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Muted 1.6% annual book value per share growth over the last two years shows its capital generation lagged behind its insurance peers
Stewart Information Services is trading at $67.90 per share, or 1.3x forward P/B. If you’re considering STC for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
WD-40 (WDFC)
Rolling One-Year Beta: -0.07
Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ: WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.
Why Is WDFC Interesting?
- Differentiated product offerings are difficult to replicate at scale and lead to a stellar gross margin of 53.8%
- Robust free cash flow margin of 15.4% gives it many options for capital deployment
- Industry-leading 27.5% return on capital demonstrates management’s skill in finding high-return investments
WD-40’s stock price of $219.28 implies a valuation ratio of 36.9x 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
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 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
