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. That said, here is one low-volatility stock that could succeed under all market conditions and two that may not deliver the returns you need.
Two Stocks to Sell:
Box (BOX)
Rolling One-Year Beta: 0.66
Known as the "Content Cloud" for managing the 90% of business data that exists as unstructured files and documents, Box (NYSE: BOX) provides a cloud-based platform that enables organizations to securely manage, share, and collaborate on their content from anywhere on any device.
Why Are We Wary of BOX?
- Offerings struggled to generate meaningful interest as its average billings growth of 10% over the last year did not impress
- Estimated sales growth of 7.9% for the next 12 months is soft and implies weaker demand
- Operating margin failed to increase over the last year, indicating the company couldn’t optimize its expenses
Box’s stock price of $28.90 implies a valuation ratio of 3.6x forward price-to-sales. To fully understand why you should be careful with BOX, check out our full research report (it’s free for active Edge members).
FOX (FOXA)
Rolling One-Year Beta: 0.76
Founded in 1915, Fox (NASDAQ: FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.
Why Should You Sell FOXA?
- Sizable revenue base leads to growth challenges as its 5.1% annual revenue increases over the last two years fell short of other consumer discretionary companies
- Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
- Free cash flow margin is forecasted to shrink by 11.2 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
At $65.13 per share, FOX trades at 14.2x forward P/E. If you’re considering FOXA for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Preferred Bank (PFBC)
Rolling One-Year Beta: 0.89
Founded in 1991 with a focus on serving the Pacific Rim community in Southern California, Preferred Bank (NASDAQ: PFBC) is a commercial bank that provides banking products and services to small and mid-sized businesses, entrepreneurs, real estate developers, and high net worth individuals.
Why Do We Like PFBC?
- Annual net interest income growth of 9.9% over the last five years beat the sector average and underscores the value of its loans
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.6% exceeded its revenue gains over the last five years
- Annual tangible book value per share growth of 13.2% over the last five years was superb and indicates its capital strength increased during this cycle
Preferred Bank is trading at $88.94 per share, or 1.4x forward P/B. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. 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 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 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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