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

Two Stocks to Sell:

Inspire Medical Systems (INSP)

Rolling One-Year Beta: 0.57

Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE: INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.

Why Does INSP Fall Short?

1. Modest revenue base of $882.6 million gives it less fixed cost leverage and fewer distribution channels than larger companies
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. Negative returns on capital show management lost money while trying to expand the business

Inspire Medical Systems is trading at $83.43 per share, or 50.9x forward P/E. To fully understand why you should be careful with INSP, check out our full research report (it’s free for active Edge members).

Prudential (PRU)

Rolling One-Year Beta: 0.88

Recognized by its iconic Rock of Gibraltar logo symbolizing strength and stability since 1896, Prudential Financial (NYSE: PRU) provides life insurance, annuities, retirement solutions, investment management, and other financial services to individual and institutional customers globally.

Why Do We Think PRU Will Underperform?

1. 3.1% annual declines in net premiums earned for the past five years indicates policy sales struggled this cycle
2. Annual book value per share declines of 11.3% for the past five years show its capital management struggled during this cycle
3. High debt-to-equity ratio of 1.3× shows the firm carries too much debt relative to shareholder equity, increasing bankruptcy risk

Prudential’s stock price of $103.56 implies a valuation ratio of 1.1x forward P/B. Read our free research report to see why you should think twice about including PRU in your portfolio.

One Stock to Buy:

McKesson (MCK)

Rolling One-Year Beta: -0.04

With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.

Why Are We Backing MCK?

1. 15.3% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
2. Massive revenue base of $387.1 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.3% exceeded its revenue gains over the last five years

At $854.77 per share, McKesson trades at 20.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. 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-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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