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 providing safe-and-steady growth and two that may not deliver the returns you need.

Two Stocks to Sell:

IBM (IBM)

Rolling One-Year Beta: 0.69

With a corporate history spanning over a century and once known for its iconic mainframe computers, IBM (NYSE: IBM) provides hybrid cloud computing platforms, AI solutions, consulting services, and enterprise infrastructure to help businesses modernize their operations.

Why Are We Cautious About IBM?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Earnings per share lagged its peers over the last five years as they only grew by 3.3% annually
3. ROIC of 11.5% reflects management’s challenges in identifying attractive investment opportunities

IBM’s stock price of $234.84 implies a valuation ratio of 20.7x forward P/E. Dive into our free research report to see why there are better opportunities than IBM.

Barrett (BBSI)

Rolling One-Year Beta: 0.82

Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ: BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.

Why Does BBSI Give Us Pause?

1. Revenue base of $1.20 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
2. Free cash flow margin dropped by 10.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $47.29 per share, Barrett trades at 20.5x forward P/E. Check out our free in-depth research report to learn more about why BBSI doesn’t pass our bar.

One Stock to Watch:

Urban Outfitters (URBN)

Rolling One-Year Beta: 0.92

Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ: URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.

Why Is URBN Interesting?

1. Locations open for at least a year are seeing increased demand as same-store sales have averaged 4.2% growth over the past two years
2. Projected revenue growth of 8.1% for the next 12 months indicates demand will rise above its six-year trend
3. Earnings growth has trumped its peers over the last five years as its EPS has compounded at 46.7% annually

Urban Outfitters is trading at $78 per share, or 17.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

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 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-micro-cap company Tecnoglass (+1,754% 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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