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 providing safe-and-steady growth and two stuck in limbo.
Two Stocks to Sell:
ICF International (ICFI)
Rolling One-Year Beta: 0.55
Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ:ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors.
Why Do We Think ICFI Will Underperform?
- Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 2.9% declines over the past two years
- Estimated sales decline of 2.6% for the next 12 months implies an even more challenging demand environment
- Underwhelming 8.1% return on capital reflects management’s difficulties in finding profitable growth opportunities
ICF International’s stock price of $78.87 implies a valuation ratio of 11.8x forward P/E. Check out our free in-depth research report to learn more about why ICFI doesn’t pass our bar.
Collegium Pharmaceutical (COLL)
Rolling One-Year Beta: 0.40
Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ:COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations.
Why Is COLL Not Exciting?
- Smaller revenue base of $757.1 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Estimated sales growth of 3.6% for the next 12 months implies demand will slow from its two-year trend
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Collegium Pharmaceutical is trading at $47.47 per share, or 6x forward P/E. Read our free research report to see why you should think twice about including COLL in your portfolio.
One Stock to Watch:
Vertex Pharmaceuticals (VRTX)
Rolling One-Year Beta: 0.46
Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ:VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.
Why Are We Fans of VRTX?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 14.4% annual sales growth over the last five years
- Strong free cash flow margin of 25.4% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
- ROIC punches in at 43%, illustrating management’s expertise in identifying profitable investments
At $431.65 per share, Vertex Pharmaceuticals trades at 21.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 (+1,545% 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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