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.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. 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:
Church & Dwight (CHD)
Rolling One-Year Beta: 0.01
Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE: CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.
Why Does CHD Worry Us?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Estimated sales growth of 1.1% for the next 12 months implies demand will slow from its three-year trend
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 4.9 percentage points
Church & Dwight’s stock price of $98.05 implies a valuation ratio of 26x forward P/E. Check out our free in-depth research report to learn more about why CHD doesn’t pass our bar.
Bristol-Myers Squibb (BMY)
Rolling One-Year Beta: 0.07
With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE: BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.
Why Are We Hesitant About BMY?
- Annual sales growth of 1.9% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Forecasted revenue decline of 4.5% for the upcoming 12 months implies demand will fall off a cliff
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Bristol-Myers Squibb is trading at $46.90 per share, or 7.1x forward P/E. If you’re considering BMY for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Altria (MO)
Rolling One-Year Beta: -0.02
Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.
Why Does MO Stand Out?
- Differentiated product offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 70.2%
- Healthy operating margin of 53.6% shows it’s a well-run company with efficient processes
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $57.88 per share, Altria trades at 10.8x forward P/E. 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
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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-micro-cap company Tecnoglass (+1,754% 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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