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. Keeping that in mind, 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:
Lowe's (LOW)
Rolling One-Year Beta: 0.72
Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials.
Why Are We Cautious About LOW?
- Annual sales declines of 4.2% for the past three years show its products struggled to connect with the market
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Commoditized inventory, bad unit economics, and high competition are reflected in its low gross margin of 33.4%
Lowe’s stock price of $241.24 implies a valuation ratio of 19.4x forward P/E. Check out our free in-depth research report to learn more about why LOW doesn’t pass our bar.
Taboola (TBLA)
Rolling One-Year Beta: 0.88
Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ:TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.
Why Is TBLA Not Exciting?
- Estimated sales decline of 26% for the next 12 months implies a challenging demand environment
- Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
- Negative returns on capital show that some of its growth strategies have backfired
Taboola is trading at $4.05 per share, or 9.2x forward P/E. To fully understand why you should be careful with TBLA, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Ross Stores (ROST)
Rolling One-Year Beta: 0.51
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ:ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Is ROST Interesting?
- Offensive push to build new stores and attack its untapped market opportunities is backed by its same-store sales growth
- Same-store sales growth averaged 3.4% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $182.72 per share, Ross Stores trades at 26.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 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 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.