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.
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 that may not deliver the returns you need.
Two Stocks to Sell:
Merit Medical Systems (MMSI)
Rolling One-Year Beta: 0.48
Founded in 1987 and now offering over 1,700 patented products across global markets, Merit Medical Systems (NASDAQ: MMSI) manufactures and markets specialized medical devices used in minimally invasive procedures for cardiology, radiology, oncology, critical care, and endoscopy.
Why Does MMSI Fall Short?
- Subscale operations are evident in its revenue base of $1.58 billion, meaning it has fewer distribution channels than its larger rivals
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Merit Medical Systems is trading at $91.18 per share, or 20.6x forward P/E. If you’re considering MMSI for your portfolio, see our FREE research report to learn more.
Community Bank (CBU)
Rolling One-Year Beta: 0.24
Tracing its roots back to 1866 in upstate New York, Community Financial System (NYSE: CBU) is a financial holding company that provides banking, employee benefits, wealth management, and insurance services to retail, commercial, and municipal customers.
Why Does CBU Worry Us?
- 7.5% annual net interest income growth over the last five years was slower than its banking peers
- Incremental sales over the last five years were less profitable as its 4% annual earnings per share growth lagged its revenue gains
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 1.4% annually over the last five years
Community Bank’s stock price of $60.83 implies a valuation ratio of 1.5x forward P/B. Check out our free in-depth research report to learn more about why CBU doesn’t pass our bar.
One Stock to Buy:
Texas Pacific Land (TPL)
Rolling One-Year Beta: -1.30
One of America's largest private landowners with roughly 868,000 acres in the Permian Basin, Texas Pacific Land (NYSE: TPL) owns land in West Texas and earns revenue from oil and gas royalties, water services, and land leases.
Why Do We Love TPL?
- Market share has increased this cycle as its 31.1% annual revenue growth over the last ten years was exceptional
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 94.9%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $344.53 per share, Texas Pacific Land trades at 24.5x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
