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. Keeping that in mind, here is one low-volatility stock that could succeed under all market conditions and two that may not deliver the returns you need.
Two Stocks to Sell:
Stewart Information Services (STC)
Rolling One-Year Beta: 0.83
Founded in 1893 during America's westward expansion when property records were often disputed, Stewart Information Services (NYSE: STC) provides title insurance and real estate services, helping homebuyers, sellers, and lenders verify property ownership and protect against title defects.
Why Does STC Give Us Pause?
- Sluggish 2.9% annualized growth in net premiums earned over the last five years indicates the firm trailed its insurance peers
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 2.8% annually
- 3.2% annual book value per share growth over the last two years was slower than its insurance peers
Stewart Information Services’s stock price of $66.05 implies a valuation ratio of 1.2x forward P/B. If you’re considering STC for your portfolio, see our FREE research report to learn more.
Mercury General (MCY)
Rolling One-Year Beta: 0.93
Founded in 1961 and maintaining a network of over 6,300 independent agents across the country, Mercury General (NYSE: MCY) is an insurance company that primarily sells automobile insurance policies through independent agents in 11 states, with a strong focus on California.
Why Is MCY Not Exciting?
- Estimated sales growth of 2.4% for the next 12 months implies demand will slow from its two-year trend
- Annual book value per share growth of 3.3% over the last five years was below our standards for the insurance sector
- Below-average return on equity indicates management struggled to find compelling investment opportunities
At $91.09 per share, Mercury General trades at 2.1x forward P/B. Dive into our free research report to see why there are better opportunities than MCY.
One Stock to Watch:
AbbVie (ABBV)
Rolling One-Year Beta: 0.26
Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.
Why Do We Like ABBV?
- Unparalleled scale of $59.64 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
- ABBV is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
- Industry-leading 16.7% return on capital demonstrates management’s skill in finding high-return investments
AbbVie is trading at $214.66 per share, or 15.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. 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.
