Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. 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:
Teleflex (TFX)
Rolling One-Year Beta: 0.41
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 Give Us Pause?
- Sales trends were unexciting over the last two years as its 2.4% annual growth was below the typical healthcare company
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Teleflex is trading at $129.24 per share, or 9.6x forward P/E. Check out our free in-depth research report to learn more about why TFX doesn’t pass our bar.
Butterfield Bank (NTB)
Rolling One-Year Beta: 0.67
Founded in 1784 as one of the oldest banks in the Western Hemisphere, Butterfield Bank (NYSE: NTB) provides banking, wealth management, and trust services to individuals and businesses in select offshore financial centers including Bermuda, Cayman Islands, and the Channel Islands.
Why Does NTB Fall Short?
- Annual net interest income growth of 1.4% over the last five years was below our standards for the banking sector
- Estimated net interest income decline of 42.5% for the next 12 months implies a challenging demand environment
- Net interest margin of 2.7% reflects its high servicing and capital costs
Butterfield Bank’s stock price of $44.94 implies a valuation ratio of 1.6x forward P/B. To fully understand why you should be careful with NTB, check out our full research report (it’s free).
One Stock to Buy:
HEICO (HEI)
Rolling One-Year Beta: 0.77
Founded in 1957, HEICO (NYSE: HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.
Why Is HEI a Good Business?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 9.6% over the past two years
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 26.2% annually
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $316.55 per share, HEICO trades at 61.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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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