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 are two low-volatility stocks that could succeed under all market conditions and one that may not keep up.

One Stock to Sell:

Allstate (ALL)

Rolling One-Year Beta: 0.48

Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous "You're in good hands" slogan, Allstate (NYSE: ALL) is one of America's largest personal property and casualty insurers, offering protection for autos, homes, and personal property.

Why Are We Wary of ALL?

1. Estimated sales growth of 3.6% for the next 12 months implies demand will slow from its two-year trend
2. Combined ratio didn't move over the last five years, showing it couldn’t increase its operational effectiveness
3. Scale is a double-edged sword because it limits the firm’s capital growth potential compared to its smaller competitors, as reflected in its below-average annual book value per share increases of 3.2% for the last five years

Allstate’s stock price of $203.63 implies a valuation ratio of 2x forward P/B. Read our free research report to see why you should think twice about including ALL in your portfolio.

Two Stocks to Watch:

Texas Roadhouse (TXRH)

Rolling One-Year Beta: 0.46

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Why Is TXRH Interesting?

1. Rapid rollout of new restaurants to capitalize on market opportunities makes sense given its strong same-store sales performance
2. Customers are lining up to eat at its restaurants as the company’s same-store sales growth averaged 7.3% over the past two years
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $167.28 per share, Texas Roadhouse trades at 25.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Waste Management (WM)

Rolling One-Year Beta: 0.06

Headquartered in Houston, Waste Management (NYSE: WM) is a provider of comprehensive waste management services in North America.

Why Do We Like WM?

1. Annual revenue growth of 10.9% over the past two years was outstanding, reflecting market share gains this cycle
2. Offerings are difficult to replicate at scale and lead to a premier gross margin of 38.7%
3. Healthy operating margin of 17.2% shows it’s a well-run company with efficient processes

Waste Management is trading at $215.03 per share, or 26.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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-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

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