Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need.
Two Stocks to Sell:
CONMED (CNMD)
Rolling One-Year Beta: 0.17
With over five decades of experience in surgical innovation since its founding in 1970, CONMED (NYSE: CNMD) develops and manufactures medical devices and equipment for surgical procedures, specializing in orthopedic and general surgery products.
Why Does CNMD Give Us Pause?
- Muted 6.7% annual revenue growth over the last five years shows its demand lagged behind its healthcare peers
- Modest revenue base of $1.32 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Low returns on capital reflect management’s struggle to allocate funds effectively
CONMED’s stock price of $57.68 implies a valuation ratio of 12.9x forward P/E. Check out our free in-depth research report to learn more about why CNMD doesn’t pass our bar.
Agilent (A)
Rolling One-Year Beta: 0.85
Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies (NYSE: A) provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.
Why Do We Think Twice About A?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Anticipated sales growth of 4.1% for the next year implies demand will be shaky
- Adjusted operating margin declined by 1.1 percentage points over the last two years as its sales cratered
At $108.63 per share, Agilent trades at 19x forward P/E. Read our free research report to see why you should think twice about including A in your portfolio.
One Stock to Watch:
Parsons (PSN)
Rolling One-Year Beta: 0.55
Delivering aerospace technology during the Cold War-era, Parsons (NYSE: PSN) offers engineering, construction, and cybersecurity solutions for the infrastructure and defense sectors.
Why Could PSN Be a Winner?
- Annual revenue growth of 23.8% over the past two years was outstanding, reflecting market share gains this cycle
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share buybacks catapulted its annual earnings per share growth to 35%, which outperformed its revenue gains over the last two years
Parsons is trading at $62.67 per share, or 16.7x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks That Overcame Trump’s 2018 Tariffs
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
