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 that could succeed under all market conditions and two stuck in limbo.
Two Stocks to Sell:
Lindsay (LNN)
Rolling One-Year Beta: 0.87
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE: LNN) provides a variety of proprietary water management and road infrastructure products and services.
Why Does LNN Give Us Pause?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4% annually
At $141.15 per share, Lindsay trades at 22.1x forward P/E. Check out our free in-depth research report to learn more about why LNN doesn’t pass our bar.
Brady (BRC)
Rolling One-Year Beta: 0.63
Founded in 1914 and evolving through more than a century of industrial innovation, Brady (NYSE: BRC) manufactures and supplies identification solutions and workplace safety products that help companies identify and protect their premises, products, and people.
Why Are We Hesitant About BRC?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Smaller revenue base of $1.51 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Free cash flow margin dropped by 5.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Brady is trading at $81.74 per share, or 16.6x forward P/E. Read our free research report to see why you should think twice about including BRC in your portfolio.
One Stock to Buy:
HCI Group (HCI)
Rolling One-Year Beta: 0.52
Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE: HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.
Why Will HCI Outperform?
- Strong 26.7% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Impressive 63.4% annual book value per share growth over the last two years indicates it’s building equity value this cycle
- Notable projected book value per share growth of 21% for the next 12 months hints at strong capital generation
HCI Group’s stock price of $186 implies a valuation ratio of 3x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 Comfort Systems (+782% 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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