Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
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 succeed under all market conditions and two that may not keep up.
Two Stocks to Sell:
Zurn Elkay (ZWS)
Rolling One-Year Beta: 0.70
Claiming to have saved more than 30 billion gallons of water, Zurn Elkay (NYSE: ZWS) provides water management solutions to various industries.
Why Do We Think Twice About ZWS?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Issuance of new shares over the last five years caused its earnings per share to fall by 3% annually
- Free cash flow margin shrank by 3.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Zurn Elkay’s stock price of $51.20 implies a valuation ratio of 30.8x forward P/E. Read our free research report to see why you should think twice about including ZWS in your portfolio.
Whirlpool (WHR)
Rolling One-Year Beta: 0.78
Credited with introducing the first automatic washing machine, Whirlpool (NYSE: WHR) is a manufacturer of a variety of home appliances.
Why Is WHR Risky?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.4% annually over the last five years
- Free cash flow margin dropped by 7 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Whirlpool is trading at $86.33 per share, or 13.6x forward P/E. Dive into our free research report to see why there are better opportunities than WHR.
One Stock to Watch:
Federated Hermes (FHI)
Rolling One-Year Beta: 0.69
With roots dating back to 1955 and a pioneering role in money market funds, Federated Hermes (NYSE: FHI) is an investment management firm that offers a wide range of funds and strategies for institutional and individual investors.
Why Could FHI Be a Winner?
- Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- ROE punches in at 25.3%, illustrating management’s expertise in identifying profitable investments
At $56.05 per share, Federated Hermes trades at 10.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
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 6 Stocks for this week. 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.
