Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. 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:
ESAB (ESAB)
Rolling One-Year Beta: 0.91
Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE: ESAB) manufactures and sells welding and cutting equipment for numerous industries.
Why Does ESAB Fall Short?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Free cash flow margin dropped by 3.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
ESAB is trading at $118.12 per share, or 20.4x forward P/E. If you’re considering ESAB for your portfolio, see our FREE research report to learn more.
Installed Building Products (IBP)
Rolling One-Year Beta: 0.92
Founded in 1977, Installed Building Products (NYSE: IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction.
Why Are We Hesitant About IBP?
- 3.5% annual revenue growth over the last two years was slower than its industrials peers
- Sales are projected to tank by 3.3% over the next 12 months as demand evaporates
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.3% annually
Installed Building Products’s stock price of $254.02 implies a valuation ratio of 25.2x forward P/E. To fully understand why you should be careful with IBP, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Zoetis (ZTS)
Rolling One-Year Beta: 0.42
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE: ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Why Do We Like ZTS?
- Constant currency growth averaged 8.6% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Strong free cash flow margin of 20.8% enables it to reinvest or return capital consistently
- Industry-leading 29.4% return on capital demonstrates management’s skill in finding high-return investments
At $142.01 per share, Zoetis trades at 22x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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 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
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