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 deliver the returns you need.

Two Stocks to Sell:

Mission Produce (AVO)

Rolling One-Year Beta: 0.82

Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.

Why Do We Steer Clear of AVO?

1. Subscale operations are evident in its revenue base of $1.39 billion, meaning it has fewer distribution channels than its larger rivals
2. Forecasted revenue decline of 15% for the upcoming 12 months implies demand will fall off a cliff
3. Gross margin of 10.9% is below its competitors, leaving less money to invest in areas like marketing and production facilities

Mission Produce is trading at $12.40 per share, or 15.8x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than AVO.

ADT (ADT)

Rolling One-Year Beta: 0.60

Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE: ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection.

Why Does ADT Worry Us?

1. Number of customers has disappointed over the past two years, indicating weak demand for its offerings
2. Projected sales growth of 3.6% for the next 12 months suggests sluggish demand
3. ROIC of 5.7% reflects management’s challenges in identifying attractive investment opportunities

ADT’s stock price of $8.28 implies a valuation ratio of 9.6x forward P/E. Read our free research report to see why you should think twice about including ADT in your portfolio.

One Stock to Buy:

Cal-Maine (CALM)

Rolling One-Year Beta: 0.69

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ: CALM) produces, packages, and distributes eggs.

Why Is CALM a Top Pick?

1. Remarkable 33.9% revenue growth over the last three years demonstrates its ability to capture significant market share
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 110% over the last three years outstripped its revenue performance
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy

At $107.60 per share, Cal-Maine trades at 7.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our 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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