Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here are two low-volatility stocks that could offer consistent gains and one stuck in limbo.
One Stock to Sell:
Supernus Pharmaceuticals (SUPN)
Rolling One-Year Beta: 0.42
With a diverse portfolio of eight FDA-approved medications targeting neurological conditions, Supernus Pharmaceuticals (NASDAQ:SUPN) develops and markets treatments for central nervous system disorders including epilepsy, ADHD, Parkinson's disease, and migraine.
Why Does SUPN Fall Short?
- Muted 2.4% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
- Modest revenue base of $665.1 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Supernus Pharmaceuticals is trading at $45.65 per share, or 22.5x forward P/E. Read our free research report to see why you should think twice about including SUPN in your portfolio.
Two Stocks to Watch:
Ulta (ULTA)
Rolling One-Year Beta: 0.72
Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ:ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.
Why Does ULTA Stand Out?
- New store openings and solid same-store sales performance have boosted its top-line growth
- Strong free cash flow margin of 8.6% enables it to reinvest or return capital consistently
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its rising returns show it’s making even more lucrative bets
Ulta’s stock price of $527.71 implies a valuation ratio of 22.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Hamilton Insurance Group (HG)
Rolling One-Year Beta: 0.40
Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE:HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.
Why Could HG Be a Winner?
- Market share has increased this cycle as its 49.7% annual revenue growth over the last two years was exceptional
- Net premiums earned surged by 26% annually over the past two years, reflecting strong market share gains this cycle
- Pre-tax profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
At $24.01 per share, Hamilton Insurance Group trades at 0.9x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
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 Strong Momentum 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.