Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here is one low-volatility stock that could succeed under all market conditions and two that may not deliver the returns you need.
Two Stocks to Sell:
B&G Foods (BGS)
Rolling One-Year Beta: -0.21
Started as a small grocery store in New York City, B&G Foods (NYSE:BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.
Why Is BGS Risky?
-
Annual sales declines of 3.3% for the past three years show its products struggled to connect with the market
-
Sales were less profitable over the last three years as its earnings per share fell by 30.8% annually, worse than its revenue declines
-
7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
B&G Foods’s stock price of $4.46 implies a valuation ratio of 6.3x forward P/E. To fully understand why you should be careful with BGS, check out our full research report (it’s free).
Dole (DOLE)
Rolling One-Year Beta: 0.40
Known for its delicious pineapples and Hawaiian roots, Dole (NYSE:DOLE) is a global agricultural company specializing in fresh fruits and vegetables.
Why Do We Think DOLE Will Underperform?
-
Annual sales declines of 2% for the past three years show its products struggled to connect with the market
-
Estimated sales growth of 1.9% for the next 12 months is soft and implies weaker demand
-
Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 8.4% that must be offset through higher volumes
Dole is trading at $13.79 per share, or 10x forward P/E. Read our free research report to see why you should think twice about including DOLE in your portfolio, it’s free.
One Stock to Watch:
Boston Scientific (BSX)
Rolling One-Year Beta: 0.84
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE:BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Is BSX Interesting?
-
Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 14.9% over the past two years
-
Forecasted revenue growth of 14.4% for the next 12 months indicates its momentum over the last two years is sustainable
-
Additional sales over the last five years increased its profitability as the 12.2% annual growth in its earnings per share outpaced its revenue
At $106.50 per share, Boston Scientific trades at 36.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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 Exlservice (+354% 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
