Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.

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 providing safe-and-steady growth and two that may not keep up.

Two Stocks to Sell:

Lithia (LAD)

Rolling One-Year Beta: 0.93

With a strong presence in the Western US, Lithia Motors (NYSE: LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.

Why Does LAD Give Us Pause?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Gross margin of 15.6% is below its competitors, leaving less money for marketing and promotions
3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Lithia’s stock price of $322.54 implies a valuation ratio of 9.2x forward P/E. Read our free research report to see why you should think twice about including LAD in your portfolio.

Campbell's (CPB)

Rolling One-Year Beta: 0.19

With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ: CPB) is a packaged food company with an illustrious portfolio of brands.

Why Should You Sell CPB?

1. Flat unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Sales are projected to tank by 2.4% over the next 12 months as demand evaporates
3. Earnings per share fell by 1.3% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable

At $26.75 per share, Campbell's trades at 10.9x forward P/E. Check out our free in-depth research report to learn more about why CPB doesn’t pass our bar.

One Stock to Watch:

ResMed (RMD)

Rolling One-Year Beta: 0.82

Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE: RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.

Why Are We Fans of RMD?

1. Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 14.2% over the last five years outstripped its revenue performance
3. Free cash flow margin expanded by 21.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

ResMed is trading at $252.42 per share, or 22.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Check out the high-quality names we’ve flagged in 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.