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 providing safe-and-steady growth and one that may not deliver the returns you need.
One Stock to Sell:
TFS Financial (TFSL)
Rolling One-Year Beta: 0.56
Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial (NASDAQ:TFSL) is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.
Why Should You Dump TFSL?
- Net interest income trends were unexciting over the last five years as its 2.8% annual growth was below the typical banking firm
- Net interest margin of 1.7% is well below other banks, signaling its loans aren’t very profitable
- Flat tangible book value per share over the last two years suggest it must find different ways to enhance shareholder value during this cycle
TFS Financial’s stock price of $14.06 implies a valuation ratio of 2.1x forward P/B. To fully understand why you should be careful with TFSL, check out our full research report (it’s free).
Two Stocks to Watch:
Lennox (LII)
Rolling One-Year Beta: 0.90
Based in Texas and founded over a century ago, Lennox (NYSE:LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.
Why Does LII Stand Out?
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 16.3%, and its operating leverage amplified its profits over the last five years
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 22.2% annually
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $567.63 per share, Lennox trades at 23.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Rocket Companies (RKT)
Rolling One-Year Beta: -0.10
Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE:RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform.
Why Is RKT on Our Radar?
- Market share will likely rise over the next 12 months as its expected net interest income growth of 47.8% is robust
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Rocket Companies is trading at $18.99 per share, or 3.5x forward P/B. Is now the right time to buy? See for yourself in our full 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 9 Market-Beating Stocks. 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 Tecnoglass (+1,754% 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.