Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here are two low-volatility stocks that could succeed under all market conditions and one stuck in limbo.
One Stock to Sell:
Wendy's (WEN)
Rolling One-Year Beta: 0.51
Founded by Dave Thomas in 1969, Wendy’s (NASDAQ: WEN) is a renowned fast-food chain known for its fresh, never-frozen beef burgers, flavorful menu options, and commitment to quality.
Why Do We Think Twice About WEN?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
- Sales are projected to remain flat over the next 12 months as demand decelerates from its six-year trend
- High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Wendy's is trading at $8.98 per share, or 10.3x forward P/E. Read our free research report to see why you should think twice about including WEN in your portfolio.
Two Stocks to Buy:
O'Reilly (ORLY)
Rolling One-Year Beta: 0.23
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ: ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
Why Will ORLY Beat the Market?
- Same-store sales growth averaged 3.5% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Unique assortment of products and pricing power are reflected in its best-in-class gross margin of 51.3%
- ORLY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $96.22 per share, O'Reilly trades at 30x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Bowhead Specialty (BOW)
Rolling One-Year Beta: 0.31
Named after the Arctic bowhead whale known for navigating challenging waters, Bowhead Specialty Holdings (NYSE: BOW) is a specialty insurance company that provides customized coverage for complex and high-risk commercial sectors.
Why Will BOW Outperform?
- Market penetration was impressive this cycle as its net premiums earned expanded by 37.9% annually over the last two years
- Notable projected revenue growth of 21.5% for the next 12 months hints at market share gains
- Earnings growth was above the peer group average over the last two years as its EPS compounded at 25.6% annually
Bowhead Specialty’s stock price of $25.87 implies a valuation ratio of 1.9x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
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 Growth Stocks for this month. 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 Kadant (+351% 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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