Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. That said, here is one low-volatility stock providing safe-and-steady growth and two that may not deliver the returns you need.
Two Stocks to Sell:
Lamb Weston (LW)
Rolling One-Year Beta: 0.21
Best known for its Grown in Idaho brand, Lamb Weston (NYSE: LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Why Are We Wary of LW?
- Projected sales decline of 1% for the next 12 months points to a tough demand environment ahead
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 5 percentage points
- Poor free cash flow margin of 0% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $50.25 per share, Lamb Weston trades at 14.6x forward P/E. To fully understand why you should be careful with LW, check out our full research report (it’s free).
Post (POST)
Rolling One-Year Beta: 0.03
Founded in 1895, Post (NYSE: POST) is a packaged food company known for its namesake breakfast cereal and healthier-for-you snacks.
Why Does POST Give Us Pause?
- Falling unit sales over the past two years suggest it might have to lower prices to stimulate growth
- 1.7 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position
- ROIC of 5.9% reflects management’s challenges in identifying attractive investment opportunities
Post’s stock price of $105.37 implies a valuation ratio of 14.8x forward P/E. If you’re considering POST for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
FirstSun Capital Bancorp (FSUN)
Rolling One-Year Beta: 0.63
Tracing its roots back to 1892 when it first opened its doors in Kansas, FirstSun Capital Bancorp (NASDAQ: FSUN) operates Sunflower Bank, providing commercial and consumer banking services to businesses and individuals across the Southwest region.
Why Is FSUN a Top Pick?
- Annual net interest income growth of 20.5% over the past four years was outstanding, reflecting market share gains this cycle
- Differentiated product suite results in a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds lead to a stellar net interest margin of 4.2%
- Annual tangible book value per share growth of 12.1% over the last five years was superb and indicates its capital strength increased during this cycle
FirstSun Capital Bancorp is trading at $37.97 per share, or 0.9x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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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