Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. 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:
Keurig Dr Pepper (KDP)
Rolling One-Year Beta: 0.20
Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ: KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.
Why Are We Hesitant About KDP?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 5.8% over the last three years was below our standards for the consumer staples sector
- Efficiency has decreased over the last year as its operating margin fell by 5.9 percentage points
- ROIC of 5.8% reflects management’s challenges in identifying attractive investment opportunities
Keurig Dr Pepper’s stock price of $27.11 implies a valuation ratio of 12.7x forward P/E. To fully understand why you should be careful with KDP, check out our full research report (it’s free for active Edge members).
Disney (DIS)
Rolling One-Year Beta: 0.93
Founded by brothers Walt and Roy, Disney (NYSE: DIS) is a multinational entertainment conglomerate, renowned for its theme parks, movies, television networks, and merchandise.
Why Are We Cautious About DIS?
- Annual sales growth of 3.1% over the last two years lagged behind its consumer discretionary peers as its large revenue baSse made it difficult to generate incremental demand
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.5 percentage points
- Underwhelming 6.8% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $106.12 per share, Disney trades at 16.6x forward P/E. Read our free research report to see why you should think twice about including DIS in your portfolio.
One Stock to Watch:
Cincinnati Financial (CINF)
Rolling One-Year Beta: 0.71
Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ: CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.
Why Is CINF on Our Radar?
- Market penetration was impressive this cycle as its net premiums earned expanded by 12.1% annually over the last two years
- Share buybacks propelled its annual earnings per share growth to 21.6%, which outperformed its revenue gains over the last five years
- Balance sheet strength has increased this cycle as its 20.8% annual book value per share Sgrowth over the last two years was exceptional
Cincinnati Financial is trading at $164.60 per share, or 1.7x forward P/B. Is now the right time to buy? See for yourself 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 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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
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