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.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here are two low-volatility stocks providing safe-and-steady growth and one that may not deliver the returns you need.
One Stock to Sell:
Medifast (MED)
Rolling One-Year Beta: 0.82
Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.
Why Do We Think MED Will Underperform?
- Products aren't resonating with the market as its revenue declined by 33.9% annually over the last three years
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
- Free cash flow margin dropped by 7.6 percentage points over the last year, implying the company became more capital intensive as competition picked up
Medifast is trading at $13.95 per share, or 0.4x forward price-to-sales. Read our free research report to see why you should think twice about including MED in your portfolio.
Two Stocks to Watch:
ResMed (RMD)
Rolling One-Year Beta: 0.76
Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE:RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.
Why Could RMD Be a Winner?
- Constant currency growth averaged 10.3% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 14.9% over the last five years outstripped its revenue performance
- Free cash flow margin jumped by 12.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $281.38 per share, ResMed trades at 27.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Primerica (PRI)
Rolling One-Year Beta: 0.85
With a sales force of over 140,000 licensed representatives operating on an independent contractor model, Primerica (NYSE:PRI) provides term life insurance, investment products, and other financial services to middle-income households in the United States and Canada.
Why Does PRI Catch Our Eye?
- Pre-tax profits increased over the last four years as the company gained some leverage on its fixed costs and became more efficient
- Share buybacks propelled its annual earnings per share growth to 18.2%, which outperformed its revenue gains over the last five years
- Industry-leading 26.7% return on equity demonstrates management’s skill in finding high-return investments
Primerica’s stock price of $277.43 implies a valuation ratio of 3.8x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.