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 stuck in limbo.

Two Stocks to Sell:

AXIS Capital (AXS)

Rolling One-Year Beta: 0.59

Founded in the aftermath of the 9/11 attacks when insurance capacity was scarce, AXIS Capital Holdings Limited (NYSE: AXS) is a global specialty insurer and reinsurer that provides coverage for complex risks across property, liability, professional lines, cyber, and other specialty markets.

Why Does AXS Give Us Pause?

1. Annual revenue growth of 4.9% over the last five years was below our standards for the insurance sector
2. Growth in insurance policies was lackluster over the last two years as its 3.4% annual growth underperformed the typical financial institution
3. ROE of 9.7% reflects management’s challenges in identifying attractive investment opportunities

At $95.25 per share, AXIS Capital trades at 1.3x forward P/B. Check out our free in-depth research report to learn more about why AXS doesn’t pass our bar.

Franklin BSP Realty Trust (FBRT)

Rolling One-Year Beta: 0.45

Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE: FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.

Why Are We Hesitant About FBRT?

1. Sales tumbled by 3.7% annually over the last two years, showing market trends are working against its favor during this cycle
2. Sales were less profitable over the last two years as its earnings per share fell by 54.5% annually, worse than its revenue declines
3. Tangible book value per share tumbled by 2.9% annually over the last five years, showing banking sector trends are working against its favor during this cycle

Franklin BSP Realty Trust’s stock price of $11.17 implies a valuation ratio of 0.8x forward P/B. To fully understand why you should be careful with FBRT, check out our full research report (it’s free).

One Stock to Buy:

Stride (LRN)

Rolling One-Year Beta: 0.35

Formerly known as K12, Stride (NYSE: LRN) is an education technology company providing education solutions through digital platforms.

Why Is LRN a Good Business?

1. Increase in enrollments shows customers are eagerly embracing its offerings
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 56.8% outpaced its revenue gains
3. Free cash flow margin grew by 8.6 percentage points over the last five years, giving the company more chips to play with

Stride is trading at $161.16 per share, or 20.4x forward P/E. Is now the time to initiate a position? Find out in our full 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 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).

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 Kadant (+351% 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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