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 offer consistent gains and one stuck in limbo.
One Stock to Sell:
Herbalife (HLF)
Rolling One-Year Beta: 0.17
With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE: HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.
Why Does HLF Fall Short?
- Shrinking unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Projected sales growth of 2.9% for the next 12 months suggests sluggish demand
- Earnings per share decreased by more than its revenue over the last three years, partly because it diluted shareholders
At $11.97 per share, Herbalife trades at 4.6x forward P/E. If you’re considering HLF for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Copart (CPRT)
Rolling One-Year Beta: 0.75
Starting as a single salvage yard in California in 1982, Copart (NASDAQ: CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.
Why Are We Bullish on CPRT?
- Market share has increased this cycle as its 15.7% annual revenue growth over the last five years was exceptional
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 19.3% outpaced its revenue gains
- Strong free cash flow margin of 24.2% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
Copart’s stock price of $39.02 implies a valuation ratio of 23.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Genpact (G)
Rolling One-Year Beta: 0.56
Originally spun off from General Electric in 2005 to provide business process services, Genpact (NYSE: G) is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions.
Why Does G Stand Out?
- Robust free cash flow margin of 11.6% gives it many options for capital deployment
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are climbing as it finds even more attractive growth opportunities
- Returns on capital are growing as management capitalizes on its market opportunities
Genpact is trading at $46.37 per share, or 12.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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