Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
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 are two low-volatility stocks that could succeed under all market conditions and one stuck in limbo.
One Stock to Sell:
Ladder Capital (LADR)
Rolling One-Year Beta: 0.35
Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE:LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.
Why Does LADR Worry Us?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 8.8% annually over the last two years
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 16.8% annually, worse than its revenue
- Tangible book value per share was flat over the last five years, indicating it’s failed to build equity value this cycle
At $8.53 per share, Ladder Capital trades at 0.8x forward P/B. Check out our free in-depth research report to learn more about why LADR doesn’t pass our bar.
Two Stocks to Watch:
JBT Marel (JBTM)
Rolling One-Year Beta: 0.59
Tracing back to its invention of the mechanical milk bottle filler in 1884, JBT Marel (NYSE:JBTM) designs, manufactures, and sells equipment used for food processing and aviation.
Why Does JBTM Stand Out?
- Market share has increased this cycle as its 54.6% annual revenue growth over the last two years was exceptional
- Healthy unit economics are reflected in its 35.4% gross margin and give it more money to invest in marketing and R&D
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 30% annually
JBT Marel’s stock price of $109.84 implies a valuation ratio of 12.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
TransUnion (TRU)
Rolling One-Year Beta: 0.92
One of the three major credit bureaus in the United States alongside Equifax and Experian, TransUnion (NYSE:TRU) is a global information and insights company that provides credit reports, fraud prevention tools, and data analytics to help businesses make decisions and consumers manage their financial health.
Why Are We Fans of TRU?
- Annual revenue growth of 11.7% over the last five years was superb and indicates its market share increased during this cycle
- Estimated revenue growth of 10.1% for the next 12 months implies its momentum over the last two years will continue
- Free cash flow margin grew by 14.5 percentage points over the last five years, giving the company more chips to play with
TransUnion is trading at $64.10 per share, or 12.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.