Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here are two low-volatility stocks that could offer consistent gains and one stuck in limbo.
One Stock to Sell:
Acadia Healthcare (ACHC)
Rolling One-Year Beta: 0.34
With a network of over 250 facilities serving patients in 38 states and Puerto Rico, Acadia Healthcare (NASDAQ: ACHC) operates facilities providing mental health and substance use disorder treatment services across the United States.
Why Is ACHC Risky?
- Weak admissions over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Earnings per share fell by 12.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $28.06 per share, Acadia Healthcare trades at 15.9x forward P/E. Dive into our free research report to see why there are better opportunities than ACHC.
Two Stocks to Watch:
Xylem (XYL)
Rolling One-Year Beta: 0.51
Formed through a spinoff, Xylem (NYSE: XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector.
Why Are We Positive on XYL?
- Annual revenue growth of 11.9% over the last five years was superb and indicates its market share increased during this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.3% exceeded its revenue gains over the last two years
- Free cash flow margin expanded by 7.8 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Xylem is trading at $101.92 per share, or 17.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
CoreCivic (CXW)
Rolling One-Year Beta: 0.38
Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE: CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States.
Why Does CXW Stand Out?
- Annual revenue growth of 12.4% over the last two years was superb and indicates its market share increased during this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 15.1%
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
CoreCivic’s stock price of $33.44 implies a valuation ratio of 15.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
