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. Keeping that in mind, here is one low-volatility stock that could succeed under all market conditions and two that may not deliver the returns you need.

Two Stocks to Sell:

Advance Auto Parts (AAP)

Rolling One-Year Beta: 0.61

Founded in Virginia in 1932, Advance Auto Parts (NYSE: AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.

Why Should You Dump AAP?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

At $51.62 per share, Advance Auto Parts trades at 24.1x forward P/E. To fully understand why you should be careful with AAP, check out our full research report (it’s free).

Taboola (TBLA)

Rolling One-Year Beta: 0.95

Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ: TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.

Why Are We Cautious About TBLA?

1. Earnings per share have dipped by 21% annually over the past three years, which is concerning because stock prices follow EPS over the long term
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2,531.6 percentage points
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Taboola is trading at $3.70 per share, or 7x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including TBLA in your portfolio.

One Stock to Watch:

Parsons (PSN)

Rolling One-Year Beta: 0.55

Delivering aerospace technology during the Cold War-era, Parsons (NYSE: PSN) offers engineering, construction, and cybersecurity solutions for the infrastructure and defense sectors.

Why Are We Fans of PSN?

1. Market share has increased this cycle as its 23.8% annual revenue growth over the last two years was exceptional
2. Share buybacks catapulted its annual earnings per share growth to 35.3%, which outperformed its revenue gains over the last two years
3. Improving returns on capital suggest its past investments are beginning to deliver value

Parsons’s stock price of $74.81 implies a valuation ratio of 19.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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