Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. 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:
ESAB (ESAB)
Rolling One-Year Beta: 0.94
Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE: ESAB) manufactures and sells welding and cutting equipment for numerous industries.
Why Are We Hesitant About ESAB?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Free cash flow margin dropped by 3.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
ESAB’s stock price of $121.84 implies a valuation ratio of 20.7x forward P/E. If you’re considering ESAB for your portfolio, see our FREE research report to learn more.
MSCI (MSCI)
Rolling One-Year Beta: 0.79
Originally known as Morgan Stanley Capital International before becoming independent in 2007, MSCI (NYSE: MSCI) provides critical decision support tools, indexes, and analytics that help global investors understand risk and return factors and build more effective investment portfolios.
Why Is MSCI Not Exciting?
- Negative return on equity shows that some of its growth strategies have backfired
MSCI is trading at $600.10 per share, or 31.7x forward P/E. Dive into our free research report to see why there are better opportunities than MSCI.
One Stock to Buy:
Erie Indemnity (ERIE)
Rolling One-Year Beta: 0.21
Operating under a unique business model dating back to 1925, Erie Indemnity (NASDAQ: ERIE) serves as the attorney-in-fact for Erie Insurance Exchange, managing policy issuance, claims handling, and investment services for this reciprocal insurer.
Why Will ERIE Beat the Market?
- Impressive 13.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Annual book value per share growth of 13.1% over the last five years was superb and indicates its capital strength increased during this cycle
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $283.12 per share, Erie Indemnity trades at 20.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
