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. That said, here is one low-volatility stock that could offer consistent gains and two that may not keep up.

Two Stocks to Sell:

Root (ROOT)

Rolling One-Year Beta: 0.50

Pioneering a data-driven approach that rewards good driving habits, Root (NASDAQ: ROOT) is a technology-driven auto insurance company that uses mobile apps to acquire customers and data science to price policies based on individual driving behavior.

Why Does ROOT Give Us Pause?

1. Annual book value per share declines of 158% for the past five years show its capital management struggled during this cycle
2. Negative return on equity shows that some of its growth strategies have backfired

At $80.90 per share, Root trades at 3.8x forward P/B. Check out our free in-depth research report to learn more about why ROOT doesn’t pass our bar.

Stellar Bancorp (STEL)

Rolling One-Year Beta: 0.94

Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE: STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.

Why Do We Pass on STEL?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Demand will likely fall over the next 12 months as Wall Street expects flat net interest income
3. Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 3.7% annually over the last five years

Stellar Bancorp’s stock price of $30.66 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than STEL.

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 Will LRN Beat the Market?

1. Number of enrollments has surged, pointing to elevated demand
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 56.8% over the last two years outstripped its revenue performance
3. Free cash flow margin increased by 8.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Stride is trading at $146 per share, or 16.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

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-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

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