Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need.
Two Stocks to Sell:
Dropbox (DBX)
Rolling One-Year Beta: 0.63
Originally named after the founders' tendency to "drop" files into a shared folder, Dropbox (NASDAQ: DBX) provides a content collaboration platform that helps individuals and teams store, organize, share, and work on files from anywhere.
Why Do We Avoid DBX?
- Customers had second thoughts about committing to its platform over the last year as its billings plateaued
- Sales are projected to tank by 1.2% over the next 12 months as demand evaporates
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 1.9 percentage points
Dropbox is trading at $27.15 per share, or 2.9x forward price-to-sales. Check out our free in-depth research report to learn more about why DBX doesn’t pass our bar.
Torrid (CURV)
Rolling One-Year Beta: 0.84
Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE: CURV) is a plus-size women’s apparel and accessories retailer.
Why Should You Sell CURV?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 26.3% annually, worse than its revenue
- 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Torrid’s stock price of $1.16 implies a valuation ratio of 7.8x forward EV-to-EBITDA. To fully understand why you should be careful with CURV, check out our full research report (it’s free).
One Stock to Watch:
McDonald's (MCD)
Rolling One-Year Beta: 0.26
With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE: MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.
Why Do We Like MCD?
- Rapidly increasing restaurant base reflects a desire to sell in new markets and scale quickly
- Attractive franchise model leads to wonderful unit economics and a best-in-class gross margin of 57%
- Robust free cash flow margin of 26.7% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety
At $308.75 per share, McDonald's trades at 23.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.
