Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could succeed under all market conditions and two that may not keep up.
Two Stocks to Sell:
Scorpio Tankers (STNG)
Rolling One-Year Beta: 0.67
Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.
Why Do We Think Twice About STNG?
- Annual sales declines of 1.5% for the past five years show its products and services struggled to connect with the market during this cycle
- Sluggish trends in its total vessels suggest customers aren’t adopting its solutions as quickly as the company hoped
- Earnings per share have contracted by 41.5% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
Scorpio Tankers is trading at $58.91 per share, or 9.4x forward P/E. If you’re considering STNG for your portfolio, see our FREE research report to learn more.
DaVita (DVA)
Rolling One-Year Beta: 0.49
With over 2,600 dialysis centers across the United States and a presence in 13 countries, DaVita (NYSE: DVA) operates a network of dialysis centers providing treatment and care for patients with chronic kidney disease and end-stage kidney disease.
Why Does DVA Worry Us?
- Sizable revenue base leads to growth challenges as its 2.7% annual revenue increases over the last five years fell short of other healthcare companies
- Flat treatments over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Estimated sales growth of 3.4% for the next 12 months implies demand will slow from its two-year trend
At $133.62 per share, DaVita trades at 11.4x forward P/E. To fully understand why you should be careful with DVA, check out our full research report (it’s free).
One Stock to Watch:
Grand Canyon Education (LOPE)
Rolling One-Year Beta: 0.85
Founded in 1949, Grand Canyon Education (NASDAQ: LOPE) is an educational services provider known for its operation at Grand Canyon University.
Why Do We Like LOPE?
- Excellent operating margin of 26.8% highlights the efficiency of its business model
- ROIC punches in at 31.8%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets
- Improving returns on capital reflect management’s ability to monetize investments
Grand Canyon Education’s stock price of $211.17 implies a valuation ratio of 23.1x 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
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 Comfort Systems (+782% 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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