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. That said, here are two low-volatility stocks that could succeed under all market conditions and one that may not keep up.
One Stock to Sell:
Medifast (MED)
Rolling One-Year Beta: 0.82
Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.
Why Do We Avoid MED?
- Products aren't resonating with the market as its revenue declined by 33.9% annually over the last three years
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
- 7.6 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position
Medifast’s stock price of $13.03 implies a valuation ratio of 0.4x forward price-to-sales. Check out our free in-depth research report to learn more about why MED doesn’t pass our bar.
Two Stocks to Watch:
Take-Two (TTWO)
Rolling One-Year Beta: 0.72
Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ:TTWO) is one of the world’s largest video game publishers.
Why Do We Watch TTWO?
- Platform and reputation resonate with consumers, as seen in its above-market 15.2% annual sales growth over the last three years
- Exciting sales outlook for the upcoming 12 months calls for 33.7% growth, an acceleration from its three-year trend
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 14.3%
At $233.05 per share, Take-Two trades at 29.6x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Preferred Bank (PFBC)
Rolling One-Year Beta: 0.95
Founded in 1991 with a focus on serving the Pacific Rim community in Southern California, Preferred Bank (NASDAQ:PFBC) is a commercial bank that provides banking products and services to small and mid-sized businesses, entrepreneurs, real estate developers, and high net worth individuals.
Why Could PFBC Be a Winner?
- Share buybacks catapulted its annual earnings per share growth to 14.8%, which outperformed its revenue gains over the last five years
- Balance sheet strength has increased this cycle as its 12.9% annual tangible book value per share growth over the last five years was exceptional
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Preferred Bank is trading at $93.49 per share, or 1.5x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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-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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