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. That said, here are two low-volatility stocks that could succeed under all market conditions and one stuck in limbo.
One Stock to Sell:
Hillman (HLMN)
Rolling One-Year Beta: 0.92
Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ: HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.
Why Does HLMN Worry Us?
- Annual revenue growth of 1.6% over the last two years was below our standards for the industrials sector
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Underwhelming 3% return on capital reflects management’s difficulties in finding profitable growth opportunities
Hillman is trading at $9.17 per share, or 16.7x forward P/E. To fully understand why you should be careful with HLMN, check out our full research report (it’s free).
Two Stocks to Watch:
Guidewire Software (GWRE)
Rolling One-Year Beta: 0.93
With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE: GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.
Why Do We Like GWRE?
- Billings growth has averaged 21.2% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $230.39 per share, Guidewire Software trades at 14.2x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Leidos (LDOS)
Rolling One-Year Beta: 0.72
Formed through the split of IT services company SAIC, Leidos (NYSE: LDOS) offers technology and engineering solutions such as military training systems for the defense, civil, and health markets.
Why Are We Positive On LDOS?
- Sales pipeline is in good shape as its backlog averaged 15.7% growth over the past two years
- Operating margin expanded by 3.4 percentage points over the last five years as it scaled and became more efficient
- Share buybacks catapulted its annual earnings per share growth to 31%, which outperformed its revenue gains over the last two years
Leidos’s stock price of $184.91 implies a valuation ratio of 16.7x 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
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum 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 Kadant (+351% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
