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. That said, 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:
RadNet (RDNT)
Rolling One-Year Beta: 0.94
With over 350 imaging facilities across seven states and a growing artificial intelligence division, RadNet (NASDAQ: RDNT) operates a network of outpatient diagnostic imaging centers across the United States, offering services like MRI, CT scans, PET scans, mammography, and X-rays.
Why Does RDNT Fall Short?
- Subscale operations are evident in its revenue base of $1.87 billion, meaning it has fewer distribution channels than its larger rivals
- Day-to-day expenses have swelled relative to revenue over the last two years as its adjusted operating margin fell by 1.3 percentage points
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3.9 percentage points
At $58 per share, RadNet trades at 109.8x forward P/E. Read our free research report to see why you should think twice about including RDNT in your portfolio.
ManpowerGroup (MAN)
Rolling One-Year Beta: 0.88
Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE: MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services.
Why Do We Avoid MAN?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Sales were less profitable over the last five years as its earnings per share fell by 19.7% annually, worse than its revenue declines
ManpowerGroup’s stock price of $42.72 implies a valuation ratio of 10.2x forward P/E. Dive into our free research report to see why there are better opportunities than MAN.
One Stock to Watch:
Yum! Brands (YUM)
Rolling One-Year Beta: 0.34
Spun off as an independent company from PepsiCo, Yum! Brands (NYSE: YUM) is a multinational corporation that owns KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill.
Why Could YUM Be a Winner?
- Fast expansion of new restaurants indicates an aggressive approach to attacking untapped market opportunities
- Highly efficient business model is illustrated by its impressive 32.1% operating margin
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Yum! Brands is trading at $148.02 per share, or 23.8x forward P/E. Is now the right time to buy? Find out in our full 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 176% over the last five years.
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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
