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.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here are two low-volatility stocks that could succeed under all market conditions and one stuck in limbo.
One Stock to Sell:
Genuine Parts (GPC)
Rolling One-Year Beta: 0.79
Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Why Are We Cautious About GPC?
- Sizable revenue base leads to growth challenges as its 4.7% annual revenue increases over the last six years fell short of other consumer retail companies
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Free cash flow margin shrank by 3.4 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
Genuine Parts is trading at $139.33 per share, or 17.1x forward P/E. Check out our free in-depth research report to learn more about why GPC doesn’t pass our bar.
Two Stocks to Watch:
Match Group (MTCH)
Rolling One-Year Beta: 0.53
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ:MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Why Are We Positive On MTCH?
- Customer spending is rising as the company has focused on monetization over the last two years, leading to 8.9% annual growth in its average revenue per user
- Highly efficient business model is illustrated by its impressive 36.3% EBITDA margin
- Strong free cash flow margin of 26.4% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
Match Group’s stock price of $37.27 implies a valuation ratio of 7.6x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Molina Healthcare (MOH)
Rolling One-Year Beta: -0.14
Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.
Why Are We Fans of MOH?
- Annual revenue growth of 19.7% over the last five years was superb and indicates its market share increased during this cycle
- Scale advantages are evident in its $43.41 billion revenue base, which provides operating leverage when demand is strong
- Earnings growth has comfortably beaten the peer group average over the last five years as its EPS has compounded at 11.1% annually
At $181.01 per share, Molina Healthcare trades at 7.8x 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
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. 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-small-cap company Comfort Systems (+782% 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
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