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 is one low-volatility stock providing safe-and-steady growth and two stuck in limbo.
Two stocks to sell:
Trimble (TRMB)
Rolling one-year beta: 0.88
Playing a role in the construction of the Paris Grand, Trimble (NASDAQ:TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.
Why Does TRMB Fall Short?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 6% annually
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
At $64.80 per share, Trimble trades at 16.6x forward P/E. To fully understand why you should be careful with TRMB, check out our full research report (it’s free).
Archer-Daniels-Midland (ADM)
Rolling one-year beta: -0.43
Transforming crops from the world's most productive agricultural regions into everyday essentials, Archer-Daniels-Midland (NYSE:ADM) processes and transports agricultural commodities like grains and oilseeds while manufacturing ingredients for food, beverages, feed, and industrial applications.
Why Are We Wary of ADM?
- Products aren’t resonating with the market as its revenue declined by 6.3% annually over the last three years
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 6.6%
- Sales were less profitable over the last three years as its earnings per share fell by 17.6% annually, worse than its revenue declines
Archer-Daniels-Midland is trading at $76.70 per share, or 13x forward P/E. If you’re considering ADM for your portfolio, see our FREE research report to learn more.
One stock to watch:
Kinder Morgan (KMI)
Rolling one-year beta: -0.72
Operating what amounts to the toll roads of the energy industry, Kinder Morgan (NYSE:KMI) transports natural gas, refined petroleum products, and crude oil through its pipeline network across North America.
Why Is KMI on Our Radar?
- Massive revenue base of $18.34 billion makes it a household name that influences purchasing decisions
- EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Strong free cash flow margin of 19.5% enables it to reinvest or return capital consistently
Kinder Morgan’s stock price of $34.09 implies a valuation ratio of 21.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-quality stocks for all market conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.