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 is one low-volatility stock that could offer consistent gains and two stuck in limbo.
Two Stocks to Sell:
Pfizer (PFE)
Rolling One-Year Beta: 0.46
With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions.
Why Are We Cautious About PFE?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Free cash flow margin shrank by 17.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Waning returns on capital imply its previous profit engines are losing steam
At $24.58 per share, Pfizer trades at 8.7x forward P/E. Check out our free in-depth research report to learn more about why PFE doesn’t pass our bar.
Allstate (ALL)
Rolling One-Year Beta: 0.67
Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous "You're in good hands" slogan, Allstate (NYSE:ALL) is one of America's largest personal property and casualty insurers, offering protection for autos, homes, and personal property.
Why Does ALL Worry Us?
- Estimated sales growth of 3.8% for the next 12 months implies demand will slow from its two-year trend
- Operational productivity has decreased over the last four years as its combined ratio worsened by 4.8 percentage points
- Flat book value per share over the last five years suggest it must find different ways to enhance shareholder value during this cycle
Allstate’s stock price of $209.65 implies a valuation ratio of 2.2x forward P/B. Read our free research report to see why you should think twice about including ALL in your portfolio.
One Stock to Buy:
Remitly (RELY)
Rolling One-Year Beta: 0.82
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Do We Love RELY?
- Active Customers are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 76.4% outpaced its revenue gains
- Free cash flow margin grew by 33.7 percentage points over the last few years, giving the company more chips to play with
Remitly is trading at $15.59 per share, or 13.7x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our 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-micro-cap company Tecnoglass (+1,754% 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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