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.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. That said, here is one low-volatility stock that could succeed under all market conditions and two that may not keep up.
Two Stocks to Sell:
Shyft (SHYF)
Rolling One-Year Beta: 0.91
Notably receiving an order from FedEx for electric vehicles, Shyft (NASDAQ:SHYF) offers specialty vehicles and truck bodies for various industries.
Why Do We Think SHYF Will Underperform?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 13.7% annually over the last two years
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.8 percentage points
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $10.40 per share, Shyft trades at 9.7x forward P/E. If you’re considering SHYF for your portfolio, see our FREE research report to learn more.
Bausch + Lomb (BLCO)
Rolling One-Year Beta: 0.66
With a nearly 170-year history dedicated to vision care and eye health innovation, Bausch + Lomb (NYSE:BLCO) develops and manufactures a comprehensive range of eye health products including contact lenses, pharmaceuticals, surgical devices, and consumer eye care solutions.
Why Are We Wary of BLCO?
- Annual revenue growth of 5.3% over the last five years was below our standards for the healthcare sector
- 20.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Bausch + Lomb’s stock price of $11.45 implies a valuation ratio of 14.5x forward P/E. To fully understand why you should be careful with BLCO, check out our full research report (it’s free).
One Stock to Watch:
Brinker International (EAT)
Rolling One-Year Beta: 0.58
Founded by Norman Brinker in Dallas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Why Are We Positive On EAT?
- Same-store sales growth over the past two years shows it’s successfully drawing diners into its restaurants
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
- Free cash flow margin increased by 4.2 percentage points over the last year, giving the company more capital to invest or return to shareholders
Brinker International is trading at $175.20 per share, or 19x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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.