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 offer consistent gains and two stuck in limbo.
Two Stocks to Sell:
City Holding (CHCO)
Rolling One-Year Beta: 0.65
With roots dating back to 1957 and a strategic presence along the I-64 and I-81 corridors, City Holding (NASDAQGS:CHCO) operates as a financial holding company providing banking, trust, and investment services through its subsidiary City National Bank across West Virginia, Kentucky, Virginia, and Ohio.
Why Are We Cautious About CHCO?
- 8.2% annual net interest income growth over the last five years was slower than its banking peers
- Estimated net interest income growth of 5% for the next 12 months implies demand will slow from its five-year trend
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 2.9% annually
At $125.49 per share, City Holding trades at 2.3x forward P/B. Read our free research report to see why you should think twice about including CHCO in your portfolio.
AXIS Capital (AXS)
Rolling One-Year Beta: 0.55
Founded in the aftermath of the 9/11 attacks when insurance capacity was scarce, AXIS Capital Holdings Limited (NYSE: AXS) is a global specialty insurer and reinsurer that provides coverage for complex risks across property, liability, professional lines, cyber, and other specialty markets.
Why Does AXS Give Us Pause?
- 5.2% annual revenue growth over the last two years was slower than its insurance peers
- Growth in insurance policies was lackluster over the last two years as its 3.8% annual growth underperformed the typical financial institution
- Low return on equity reflects management’s struggle to allocate funds effectively
AXIS Capital’s stock price of $107.67 implies a valuation ratio of 1.4x forward P/B. If you’re considering AXS for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
TJX (TJX)
Rolling One-Year Beta: 0.29
Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE: TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.
Why Does TJX Catch Our Eye?
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 4% over the past two years
- Massive revenue base of $58.98 billion makes up for its weaker gross margin and makes it a household name that influences purchasing decisions
- Industry-leading 27.9% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities
TJX is trading at $154.38 per share, or 31.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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-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.
