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.
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 are two low-volatility stocks that could succeed under all market conditions and one that may not deliver the returns you need.
One Stock to Sell:
GMS (GMS)
Rolling One-Year Beta: 0.76
Founded in 1971, GMS (NYSE: GMS) distributes specialty building materials including wallboard, ceilings, and insulation products, to the construction industry.
Why Is GMS Not Exciting?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Earnings per share have dipped by 19.5% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Eroding returns on capital suggest its historical profit centers are aging
GMS is trading at $109.93 per share, or 16.9x forward P/E. Check out our free in-depth research report to learn more about why GMS doesn’t pass our bar.
Two Stocks to Watch:
Stryker (SYK)
Rolling One-Year Beta: 0.68
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Is SYK on Our Radar?
- Average organic revenue growth of 10.2% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- $23.82 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 13.3% annually
At $391.41 per share, Stryker trades at 28x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Oscar Health (OSCR)
Rolling One-Year Beta: 0.28
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Will OSCR Beat the Market?
- Annual revenue growth of 37.4% over the last two years was superb and indicates its market share increased during this cycle
- Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Earnings growth has massively outpaced its peers over the last four years as its EPS has compounded at 19.3% annually
Oscar Health’s stock price of $16.59 implies a valuation ratio of 109.2x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. 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
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