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. Keeping that in mind, here is one low-volatility stock that could succeed under all market conditions and two that may not keep up.
Two Stocks to Sell:
Carter's (CRI)
Rolling One-Year Beta: 0.88
Rumored to sell more than 10 products for every child born in the United States, Carter's (NYSE: CRI) is an American designer and marketer of children's apparel.
Why Should You Dump CRI?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
- Projected sales growth of 1.8% for the next 12 months suggests sluggish demand
- Waning returns on capital imply its previous profit engines are losing steam
At $30.37 per share, Carter's trades at 14x forward P/E. Dive into our free research report to see why there are better opportunities than CRI.
Simpson (SSD)
Rolling One-Year Beta: 0.83
Aiming to build safer and stronger buildings, Simpson (NYSE: SSD) designs and manufactures structural connectors, anchors, and other construction products.
Why Are We Wary of SSD?
- Annual revenue growth of 2.8% over the last two years was below our standards for the industrials sector
- 6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Eroding returns on capital suggest its historical profit centers are aging
Simpson is trading at $173.74 per share, or 20.4x forward P/E. If you’re considering SSD for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Lake City Bank (LKFN)
Rolling One-Year Beta: 0.92
Dating back to 1872 and deeply rooted in Indiana's communities, Lakeland Financial Corporation (NASDAQ: LKFN) operates Lake City Bank, providing commercial and consumer banking services throughout Northern and Central Indiana.
Why Do We Watch LKFN?
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 4.1% annually, topping its revenue gains
- Annual tangible book value per share growth of 15.7% over the past two years was outstanding, reflecting strong capital accumulation this cycle
- Industry-leading 15.3% return on equity demonstrates management’s skill in finding high-return investments
Lake City Bank’s stock price of $57.59 implies a valuation ratio of 1.9x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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 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 Kadant (+351% 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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