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.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. That said, here are two low-volatility stocks that could offer consistent gains and one that may not deliver the returns you need.
One Stock to Sell:
West Pharmaceutical Services (WST)
Rolling One-Year Beta: 0.81
Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE: WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.
Why Are We Hesitant About WST?
- 1.5% annual revenue growth over the last two years was slower than its healthcare peers
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 5.5 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
West Pharmaceutical Services’s stock price of $276.40 implies a valuation ratio of 36.8x forward P/E. Dive into our free research report to see why there are better opportunities than WST.
Two Stocks to Watch:
Progressive (PGR)
Rolling One-Year Beta: 0.58
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE: PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Why Is PGR a Top Pick?
- Net premiums earned expanded by 19.5% annually over the last two years, demonstrating exceptional market penetration this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 93.9% over the last two years outstripped its revenue performance
- Balance sheet strength has increased this cycle as its 44.7% annual book value per share growth over the last two years was exceptional
Progressive is trading at $211.69 per share, or 3.8x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
1st Source (SRCE)
Rolling One-Year Beta: 0.77
Tracing its roots back to 1863 during the Civil War era, 1st Source Corporation (NASDAQ: SRCE) is a regional bank holding company that provides commercial, consumer, specialty finance, and wealth management services across Indiana, Michigan, and Florida.
Why Are We Fans of SRCE?
- Net interest margin expanded by 48.7 basis points (100 basis points = 1 percentage point) over the last two years, providing additional flexibility for investments
- Share repurchases over the last five years enabled its annual earnings per share growth of 15.9% to outpace its revenue gains
- Balance sheet strength has increased this cycle as its 8.7% annual tangible book value per share growth over the last five years was exceptional
At $62.37 per share, 1st Source trades at 1.2x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% 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.
