Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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 is one low-volatility stock that could succeed under all market conditions and two that may not deliver the returns you need.
Two Stocks to Sell:
Walmart (WMT)
Rolling One-Year Beta: 0.74
Known for its large-format Supercenters, Walmart (NYSE:WMT) is a retail pioneer that serves a budget-conscious consumer who is looking for a wide range of products under one roof.
Why Is WMT Not Exciting?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 5% over the last six years was below our standards for the consumer retail sector
- Gross margin of 24.8% is below its competitors, leaving less money for marketing and promotions
- Incremental sales over the last six years were much less profitable as its earnings per share fell by 6.7% annually while its revenue grew
At $101.93 per share, Walmart trades at 37x forward P/E. Dive into our free research report to see why there are better opportunities than WMT.
Barrett (BBSI)
Rolling One-Year Beta: 0.79
Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ:BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.
Why Does BBSI Give Us Pause?
- Smaller revenue base of $1.20 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- 10.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Eroding returns on capital suggest its historical profit centers are aging
Barrett’s stock price of $42.95 implies a valuation ratio of 19.1x forward P/E. If you’re considering BBSI for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
AvidXchange (AVDX)
Rolling One-Year Beta: 0.90
Born from the frustration of paper-based accounting processes in the early 2000s, AvidXchange (NASDAQ:AVDX) provides accounts payable automation software and payment solutions that help middle-market businesses digitize and streamline their invoice processing and payments.
Why Is AVDX on Our Radar?
- Annual revenue growth of 22% over the past five years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 104% annual growth in its earnings per share outpaced its revenue
AvidXchange is trading at $10 per share, or 32.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
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 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-micro-cap company Kadant (+351% 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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