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. That said, here is one low-volatility stock providing safe-and-steady growth and two stuck in limbo.
Two Stocks to Sell:
Taylor Morrison Home (TMHC)
Rolling One-Year Beta: 0.62
Named “America’s Most Trusted Home Builder” in 2019, Taylor Morrison Home (NYSE: TMHC) builds single family homes and communities across the United States.
Why Is TMHC Not Exciting?
- Demand cratered as it couldn’t win new orders over the past two years, leading to an average 14.5% decline in its backlog
- Sales are projected to tank by 14.7% 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 2.6% annually
At $61.65 per share, Taylor Morrison Home trades at 10x forward P/E. Dive into our free research report to see why there are better opportunities than TMHC.
Gilead Sciences (GILD)
Rolling One-Year Beta: 0.22
From its groundbreaking work in developing the first single-tablet regimens for HIV treatment, Gilead Sciences (NASDAQ: GILD) develops and markets innovative medicines for life-threatening diseases including HIV, viral hepatitis, COVID-19, and cancer.
Why Does GILD Worry Us?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.2% over the last two years was below our standards for the healthcare sector
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 7.8 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
Gilead Sciences is trading at $142.88 per share, or 17.2x forward P/E. If you’re considering GILD for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Stryker (SYK)
Rolling One-Year Beta: 0.69
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Do We Like SYK?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 10.2% over the past two years
- Economies of scale give it some operating leverage when demand rises
- Incremental sales over the last five years have been more profitable as its earnings per share increased by 12.9% annually, topping its revenue gains
Stryker’s stock price of $365.28 implies a valuation ratio of 24.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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.
