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 offer consistent gains and two that may not keep up.

Two Stocks to Sell:

Reynolds (REYN)

Rolling One-Year Beta: 0.21

Best known for its aluminum foil, Reynolds (NASDAQ: REYN) is a household products company whose products focus on food storage, cooking, and waste.

Why Do We Avoid REYN?

1. Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
2. Sales are projected to be flat over the next 12 months and imply weak demand
3. Capital intensity has ramped up over the last year as its free cash flow margin decreased by 5.8 percentage points

At $22.93 per share, Reynolds trades at 14.2x forward P/E. Read our free research report to see why you should think twice about including REYN in your portfolio.

Procter & Gamble (PG)

Rolling One-Year Beta: 0.23

Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble (NYSE: PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.

Why Does PG Fall Short?

1. Flat unit sales over the past two years suggest it might have to lower prices to stimulate growth
2. Anticipated sales growth of 2.9% for the next year implies demand will be shaky
3. Free cash flow margin dropped by 3 percentage points over the last year, implying the company became more capital intensive as competition picked up

Procter & Gamble is trading at $152.25 per share, or 21.7x forward P/E. If you’re considering PG for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Palomar Holdings (PLMR)

Rolling One-Year Beta: 0.48

Founded in 2013 to fill gaps in catastrophe insurance markets, Palomar Holdings (NASDAQ: PLMR) is a specialty insurance provider that offers property and casualty insurance products in underserved markets, with a focus on earthquake coverage.

Why Is PLMR a Good Business?

1. Strong 38.3% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
2. Balance sheet strength has increased this cycle as its 37.7% annual book value per share growth over the last two years was exceptional
3. Notable projected book value per share growth of 24.9% for the next 12 months hints at strong capital generation

Palomar Holdings’s stock price of $114.40 implies a valuation ratio of 3.3x forward P/B. 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

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 5 Strong Momentum 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).

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