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 stuck in limbo.
One Stock to Sell:
Nike (NKE)
Rolling One-Year Beta: 0.95
Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE: NKE) is a global titan in athletic footwear, apparel, equipment, and accessories.
Why Do We Steer Clear of NKE?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
- Eroding returns on capital suggest its historical profit centers are aging
Nike is trading at $74.55 per share, or 43.6x forward P/E. To fully understand why you should be careful with NKE, check out our full research report (it’s free).
Two Stocks to Watch:
CACI (CACI)
Rolling One-Year Beta: 0.23
Founded to commercialize SIMSCRIPT, CACI International (NYSE: CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.
Why Does CACI Stand Out?
- Demand is greater than supply as the company’s 13% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Share repurchases over the last two years enabled its annual earnings per share growth of 16.9% to outpace its revenue gains
CACI’s stock price of $460.57 implies a valuation ratio of 17.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Alignment Healthcare (ALHC)
Rolling One-Year Beta: 0.67
Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ: ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.
Why Do We Love ALHC?
- Average customer growth of 40.2% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
- Earnings growth has massively outpaced its peers over the last four years as its EPS has compounded at 45.5% annually
- Free cash flow profile has moved into break even territory, showing the company has crossed a key inflection point
At $13.41 per share, Alignment Healthcare trades at 1,033.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2024 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-micro-cap company Kadant (+351% 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.
