Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. 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:
Ryder (R)
Rolling One-Year Beta: 0.68
As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE: R) provides rental vehicles to businesses and delivers packages directly to homes or businesses.
Why Are We Hesitant About R?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 2.4% for the last two years
- Gross margin of 19.7% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Cash-burning history makes us doubt the long-term viability of its business model
Ryder’s stock price of $238.05 implies a valuation ratio of 14.5x forward P/E. If you’re considering R for your portfolio, see our FREE research report to learn more.
First Hawaiian Bank (FHB)
Rolling One-Year Beta: 0.51
Dating back to 1858 as Hawaii's oldest bank with deep roots in the Pacific island communities, First Hawaiian (NASDAQ: FHB) operates a full-service community bank providing deposit accounts, commercial and consumer loans, credit cards, and wealth management services across Hawaii, Guam, and Saipan.
Why Should You Sell FHB?
- Muted 5.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Annual earnings per share growth of 1.6% underperformed its revenue over the last five years, showing its incremental sales were less profitable
- Estimated tangible book value per share growth of 2.9% for the next 12 months implies profitability will slow from its two-year trend
First Hawaiian Bank is trading at $24.78 per share, or 1x forward P/B. Read our free research report to see why you should think twice about including FHB in your portfolio.
One Stock to Buy:
Ross Stores (ROST)
Rolling One-Year Beta: 0.32
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ: ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Are We Bullish on ROST?
- Same-store sales growth lends it the confidence to gradually expand its store base so it can reach more customers
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 6.1% over the past two years
- ROIC punches in at 30.6%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities
At $234.00 per share, Ross Stores trades at 27.4x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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.
