Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here is one low-volatility stock providing safe-and-steady growth and two stuck in limbo.
Two Stocks to Sell:
TreeHouse Foods (THS)
Rolling One-Year Beta: 0.46
Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE: THS) produces a wide range of private-label foods for grocery and food service customers.
Why Should You Sell THS?
- Shrinking unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
- Gross margin of 16.5% is below its competitors, leaving less money to invest in areas like marketing and production facilities
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
TreeHouse Foods’s stock price of $21.76 implies a valuation ratio of 11.2x forward P/E. To fully understand why you should be careful with THS, check out our full research report (it’s free).
Wiley (WLY)
Rolling One-Year Beta: 0.74
With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE: WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals.
Why Should You Dump WLY?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.6% annually over the last five years
- Earnings per share were flat over the last two years and fell short of the peer group average
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.3 percentage points
At $38.54 per share, Wiley trades at 16x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than WLY.
One Stock to Watch:
Cardinal Health (CAH)
Rolling One-Year Beta: 0.46
Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE: CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.
Why Are We Fans of CAH?
- Massive revenue base of $222.3 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Projected revenue growth of 8.7% for the next 12 months indicates demand will rise above its two-year trend
- Earnings per share grew by 7.7% annually over the last five years, above the peer group average
Cardinal Health is trading at $160 per share, or 18.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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 9 Market-Beating Stocks. 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.
