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 that may not deliver the returns you need.
Two Stocks to Sell:
Advance Auto Parts (AAP)
Rolling One-Year Beta: 0.61
Founded in Virginia in 1932, Advance Auto Parts (NYSE: AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats.
Why Should You Dump AAP?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
At $51.62 per share, Advance Auto Parts trades at 24.1x forward P/E. To fully understand why you should be careful with AAP, check out our full research report (it’s free).
Taboola (TBLA)
Rolling One-Year Beta: 0.95
Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ: TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.
Why Are We Cautious About TBLA?
- Earnings per share have dipped by 21% annually over the past three years, which is concerning because stock prices follow EPS over the long term
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2,531.6 percentage points
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Taboola is trading at $3.70 per share, or 7x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including TBLA in your portfolio.
One Stock to Watch:
Parsons (PSN)
Rolling One-Year Beta: 0.55
Delivering aerospace technology during the Cold War-era, Parsons (NYSE: PSN) offers engineering, construction, and cybersecurity solutions for the infrastructure and defense sectors.
Why Are We Fans of PSN?
- Market share has increased this cycle as its 23.8% annual revenue growth over the last two years was exceptional
- Share buybacks catapulted its annual earnings per share growth to 35.3%, which outperformed its revenue gains over the last two years
- Improving returns on capital suggest its past investments are beginning to deliver value
Parsons’s stock price of $74.81 implies a valuation ratio of 19.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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 9 Market-Beating Stocks. 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
