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.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock providing safe-and-steady growth and two that may not deliver the returns you need.

Two Stocks to Sell:

Hormel Foods (HRL)

Rolling One-Year Beta: 0.10

Best known for its SPAM brand, Hormel (NYSE: HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads.

Why Is HRL Not Exciting?

1. Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Gross margin of 16.6% is an output of its commoditized products
3. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 7% annually, worse than its revenue

Hormel Foods is trading at $25.02 per share, or 14.1x forward P/E. Read our free research report to see why you should think twice about including HRL in your portfolio.

Reinsurance Group of America (RGA)

Rolling One-Year Beta: 0.79

Operating behind the scenes of the insurance industry since 1973, Reinsurance Group of America (NYSE: RGA) provides life and health reinsurance services to insurance companies, helping them manage risk and meet regulatory requirements.

Why Do We Think Twice About RGA?

1. Book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle
2. Estimated book value per share growth of 1.4% for the next 12 months implies profitability will slow from its two-year trend
3. Low return on equity reflects management’s struggle to allocate funds effectively

Reinsurance Group of America’s stock price of $194.71 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with RGA, check out our full research report (it’s free).

One Stock to Watch:

AbbVie (ABBV)

Rolling One-Year Beta: 0.36

Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.

Why Could ABBV Be a Winner?

1. Unparalleled scale of $58.33 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
2. ABBV is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

At $211.22 per share, AbbVie trades at 16.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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 6 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 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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