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. That said, here is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need.
Two Stocks to Sell:
Allegion (ALLE)
Rolling One-Year Beta: 0.68
Allegion plc (NYSE: ALLE) is a provider of security products and solutions that keep people and assets safe and secure in various environments.
Why Does ALLE Give Us Pause?
- Sales trends were unexciting over the last two years as its 4.9% annual growth was below the typical industrials company
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Eroding returns on capital suggest its historical profit centers are aging
Allegion’s stock price of $162.08 implies a valuation ratio of 18.8x forward P/E. Read our free research report to see why you should think twice about including ALLE in your portfolio.
IBM (IBM)
Rolling One-Year Beta: 0.66
With a corporate history spanning over a century and once known for its iconic mainframe computers, IBM (NYSE: IBM) provides hybrid cloud computing platforms, AI solutions, consulting services, and enterprise infrastructure to help businesses modernize their operations.
Why Is IBM Not Exciting?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.3% over the last five years was below our standards for the business services sector
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 4.2% annually
IBM is trading at $311.99 per share, or 25.2x forward P/E. If you’re considering IBM for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
HCI Group (HCI)
Rolling One-Year Beta: 0.68
Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE: HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.
Why Will HCI Beat the Market?
- Net premiums earned surged by 28% annually over the past two years, reflecting strong market share gains this cycle
- Balance sheet strength has increased this cycle as its 65.1% annual book value per share growth over the last two years was exceptional
- Notable projected book value per share growth of 36.9% for the next 12 months hints at strong capital generation
At $179.59 per share, HCI Group trades at 2.4x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
