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.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. 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:
CVB Financial (CVBF)
Rolling one-year beta: 0.18
With roots dating back to 1974 and a focus on serving small and medium-sized businesses, CVB Financial (NASDAQ: CVBF) operates Citizens Business Bank, providing banking, lending, and trust services to businesses and individuals across California.
Why Does CVBF Give Us Pause?
- Net interest income trends were unexciting over the last five years as its 3.1% annual growth was below the typical banking firm
- Performance over the past five years shows its incremental sales were less profitable, as its 1.3% annual earnings per share growth trailed its revenue gains
- Annual tangible book value per share growth of 1.5% over the last five years was below our standards for the banking sector
CVB Financial’s stock price of $22.54 implies a valuation ratio of 1.3x forward P/B. To fully understand why you should be careful with CVBF, check out our full research report (it’s free).
PulteGroup (PHM)
Rolling one-year beta: 0.60
Having delivered over 850,000 homes since its founding in 1950, PulteGroup (NYSE: PHM) is one of America's largest homebuilders, constructing single-family homes, townhouses, and condominiums for first-time, move-up, and active adult buyers across 46 markets in 25 states.
Why Should You Sell PHM?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 4% annually over the last two years
- Earnings per share have dipped by 15.5% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Eroding returns on capital suggest its historical profit centers are aging
PulteGroup is trading at $119.72 per share, or 13x forward P/E. If you’re considering PHM for your portfolio, see our FREE research report to learn more.
One stock to watch:
Freshworks (FRSH)
Rolling one-year beta: 0.85
Starting as a customer service solution before expanding into a comprehensive software suite, Freshworks (NASDAQ: FRSH) provides AI-powered software-as-a-service solutions that help companies manage customer service, IT support, sales, and marketing functions.
Why Are We Positive on FRSH?
- 24% annual revenue growth over the last five years surpassed the sector average as its software resonated with customers
- Superior software functionality and low servicing costs lead to a premier gross margin of 85%
- FRSH is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $14.73 per share, Freshworks trades at 3.9x forward price-to-sales. 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
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
