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 providing safe-and-steady growth and two stuck in limbo.
Two Stocks to Sell:
Teleflex (TFX)
Rolling One-Year Beta: 0.39
With a portfolio spanning from vascular access catheters to minimally invasive surgical tools, Teleflex (NYSE: TFX) designs, manufactures, and supplies single-use medical devices used in critical care and surgical procedures across hospitals worldwide.
Why Does TFX Worry Us?
- Annual revenue growth of 2.4% over the last two years was below our standards for the healthcare sector
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Teleflex is trading at $125.50 per share, or 8.7x forward P/E. To fully understand why you should be careful with TFX, check out our full research report (it’s free for active Edge members).
FTI Consulting (FCN)
Rolling One-Year Beta: 0.40
With a team of experts deployed across 30+ countries to tackle complex business challenges, FTI Consulting (NYSE: FCN) is a global business advisory firm that helps organizations manage change, mitigate risk, and resolve disputes across financial, legal, operational, and regulatory matters.
Why Are We Hesitant About FCN?
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 2.7 percentage points
- 9.1 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
- ROIC of 13.9% reflects management’s challenges in identifying attractive investment opportunities
At $165.01 per share, FTI Consulting trades at 19.1x forward P/E. Check out our free in-depth research report to learn more about why FCN doesn’t pass our bar.
One Stock to Watch:
Monarch (MCRI)
Rolling One-Year Beta: 0.84
Established in 1993, Monarch (NASDAQ: MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.
Why Are We Positive On MCRI?
- Excellent operating margin of 21.1% highlights the efficiency of its business model
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 40% over the last five years outstripped its revenue performance
- Robust free cash flow margin of 23.5% gives it many options for capital deployment
Monarch’s stock price of $90.07 implies a valuation ratio of 15.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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-small-cap company Exlservice (+354% 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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