
A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here are two low-volatility stocks that could succeed under all market conditions and one that may not keep up.
One Stock to Sell:
Restaurant Brands (QSR)
Rolling One-Year Beta: 0.27
Formed through a strategic merger, Restaurant Brands International (NYSE:QSR) is a multinational corporation that owns three iconic fast-food chains: Burger King, Tim Hortons, and Popeyes.
Why Are We Hesitant About QSR?
- Estimated sales growth of 4.4% for the next 12 months implies demand will slow from its six-year trend
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 4.5 percentage points
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Restaurant Brands’s stock price of $69.08 implies a valuation ratio of 17.5x forward P/E. If you’re considering QSR for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Urban Outfitters (URBN)
Rolling One-Year Beta: 0.91
Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ:URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.
Why Could URBN Be a Winner?
- Same-store sales growth lends it the confidence to gradually expand its store base so it can reach more customers
- Same-store sales growth averaged 4.3% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Earnings per share grew by 64.3% annually over the last five years, massively outpacing its peers
At $62.91 per share, Urban Outfitters trades at 11.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Cintas (CTAS)
Rolling One-Year Beta: 0.87
Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ:CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.
Why Are We Backing CTAS?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 8.5% annual sales growth over the last five years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 15.9% exceeded its revenue gains over the last five years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Cintas is trading at $185.32 per share, or 37.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 6 Stocks for this week. 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-small-cap company Comfort Systems (+782% 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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