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. That said, here is one low-volatility stock providing safe-and-steady growth and two that may not deliver the returns you need.
Two Stocks to Sell:
Avery Dennison (AVY)
Rolling One-Year Beta: 0.60
Founded as Kum Kleen Products, Avery Dennison (NYSE: AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.
Why Does AVY Give Us Pause?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Free cash flow margin shrank by 2.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Eroding returns on capital suggest its historical profit centers are aging
At $188.65 per share, Avery Dennison trades at 18.9x forward P/E. If you’re considering AVY for your portfolio, see our FREE research report to learn more.
Corcept (CORT)
Rolling One-Year Beta: -0.12
Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.
Why Should You Sell CORT?
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 24.7 percentage points
- Earnings per share fell by 6.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Free cash flow margin shrank by 21.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Corcept is trading at $34.87 per share, or 49.7x forward P/E. Read our free research report to see why you should think twice about including CORT in your portfolio.
One Stock to Buy:
O'Reilly (ORLY)
Rolling One-Year Beta: 0.12
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ: ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
Why Are We Bullish on ORLY?
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.5% growth over the past two years
- Highly efficient business model is illustrated by its impressive 19.5% operating margin
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
O'Reilly’s stock price of $94.50 implies a valuation ratio of 29.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
