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. That said, here are two low-volatility stocks that could offer consistent gains and one that may not keep up.
One Stock to Sell:
WaFd Bank (WAFD)
Rolling One-Year Beta: 0.77
Founded in 1917 and rebranded from Washington Federal in 2023, WaFd (NASDAQ: WAFD) is a bank holding company that provides lending, deposit services, and insurance through its Washington Federal Bank subsidiary across eight western states.
Why Are We Hesitant About WAFD?
- Annual net interest income growth of 7% over the last five years was below our standards for the banking sector
- Net interest margin dropped by 102.2 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market
- Sales were less profitable over the last two years as its earnings per share fell by 18.8% annually, worse than its revenue declines
WaFd Bank is trading at $31.10 per share, or 0.9x forward P/B. Check out our free in-depth research report to learn more about why WAFD doesn’t pass our bar.
Two Stocks to Watch:
Chipotle (CMG)
Rolling One-Year Beta: 0.71
Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE: CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.
Why Is CMG a Good Business?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Same-store sales growth averaged 4.8% over the past two years, showing it’s bringing new and repeat diners into its restaurants
- Massive revenue base of $11.58 billion makes it a household name that influences purchasing decisions
Chipotle’s stock price of $40.02 implies a valuation ratio of 30.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Altria (MO)
Rolling One-Year Beta: 0.00
Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.
Why Could MO Be a Winner?
- Products command premium prices and lead to a best-in-class gross margin of 70.7%
- Healthy operating margin of 54.6% shows it’s a well-run company with efficient processes
- Strong free cash flow margin of 43.3% enables it to reinvest or return capital consistently
At $65.65 per share, Altria trades at 11.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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 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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