Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here is one low-volatility stock providing safe-and-steady growth and two that may not deliver the returns you need.
Two Stocks to Sell:
W.W. Grainger (GWW)
Rolling One-Year Beta: 0.81
Founded as a supplier of motors, W.W. Grainger (NYSE:GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
Why Do We Think Twice About GWW?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Estimated sales growth of 4.5% for the next 12 months is soft and implies weaker demand
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.9% annually
W.W. Grainger’s stock price of $943.65 implies a valuation ratio of 22.3x forward P/E. Check out our free in-depth research report to learn more about why GWW doesn’t pass our bar.
Tri Pointe Homes (TPH)
Rolling One-Year Beta: 0.53
Established in 2009 in California, Tri Pointe Homes (NYSE:TPH) is a United States homebuilder recognized for its innovative and sustainable approach to creating premium, life-enhancing homes.
Why Should You Dump TPH?
- Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 11.2% declines over the past two years
- Projected sales decline of 17.8% over the next 12 months indicates demand will continue deteriorating
- Sales were less profitable over the last two years as its earnings per share fell by 7.5% annually, worse than its revenue declines
At $32.21 per share, Tri Pointe Homes trades at 14x forward P/E. Dive into our free research report to see why there are better opportunities than TPH.
One Stock to Watch:
Celsius (CELH)
Rolling One-Year Beta: 0.53
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Why Is CELH on Our Radar?
- Market share has increased over the last three years as its 54.2% annual revenue growth was exceptional
- Earnings per share grew by 321% annually over the last three years, massively outpacing its peers
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
Celsius is trading at $45.08 per share, or 31.1x 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.
High-Quality Stocks for All Market Conditions
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 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
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