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. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two that may not keep up.
Two Stocks to Sell:
Sprinklr (CXM)
Rolling One-Year Beta: 0.95
With a proprietary AI engine processing 450 million data points daily across 30+ digital channels, Sprinklr (NYSE:CXM) provides cloud-based software that helps large enterprises manage customer experiences across social, messaging, chat, and voice channels.
Why Are We Out on CXM?
- Products, pricing, or go-to-market strategy may need some adjustments as its 3.1% average billings growth over the last year was weak
- Estimated sales growth of 4.3% for the next 12 months implies demand will slow from its two-year trend
- Operating margin didn’t move over the last year, showing it couldn’t increase its efficiency
At $7.74 per share, Sprinklr trades at 2.4x forward price-to-sales. Check out our free in-depth research report to learn more about why CXM doesn’t pass our bar.
Starwood Property Trust (STWD)
Rolling One-Year Beta: 0.65
With a diverse portfolio spanning commercial properties, residential mortgages, infrastructure loans, and real estate servicing, Starwood Property Trust (NYSE:STWD) is a real estate investment trust that originates, acquires, and manages commercial mortgages, residential loans, and other real estate investments.
Why Do We Think STWD Will Underperform?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 6% annually over the last two years
- Customers borrowered less money this cycle as its net interest income declined by 2.5% annually over the last four years
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 4.1% annually over the last two years
Starwood Property Trust’s stock price of $19.48 implies a valuation ratio of 1x forward P/B. To fully understand why you should be careful with STWD, check out our full research report (it’s free).
One Stock to Watch:
Abercrombie and Fitch (ANF)
Rolling One-Year Beta: 0.93
Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE:ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.
Why Could ANF Be a Winner?
- Same-store sales growth averaged 13.5% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Unique assortment of products and pricing power lead to a best-in-class gross margin of 63.6%
- Earnings growth has trumped its peers over the last six years as its EPS has compounded at 48.1% annually
Abercrombie and Fitch is trading at $85.18 per share, or 8.4x forward P/E. Is now a good time to buy? See for yourself 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 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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