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. Keeping that in mind, here are two low-volatility stocks that could succeed under all market conditions and one that may not keep up.
One Stock to Sell:
Hologic (HOLX)
Rolling One-Year Beta: -0.23
As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ: HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness.
Why Does HOLX Give Us Pause?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 23.2 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
At $64.69 per share, Hologic trades at 14.7x forward P/E. Check out our free in-depth research report to learn more about why HOLX doesn’t pass our bar.
Two Stocks to Watch:
H&R Block (HRB)
Rolling One-Year Beta: 0.18
Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE: HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.
Why Are We Bullish on HRB?
- Remarkable 30.5% revenue growth over the last five years demonstrates its ability to capture significant market share
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 41.5% exceeded its revenue gains over the last five years
- Industry-leading 56.7% return on capital demonstrates management’s skill in finding high-return investments, and its returns are growing as it capitalizes on even better market opportunities
H&R Block is trading at $56.28 per share, or 16.4x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stryker (SYK)
Rolling One-Year Beta: 0.54
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 Does SYK Catch Our Eye?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 10.4% over the past two years
- $23.22 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
- Has the option to reinvest or return capital to investors as its 14.6% free cash flow margin is well above its peers
Stryker’s stock price of $379 implies a valuation ratio of 27.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. 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 Tecnoglass (+1,754% 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.
