Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could succeed under all market conditions and two that may not deliver the returns you need.
Two Stocks to Sell:
Laureate Education (LAUR)
Rolling One-Year Beta: 0.73
Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ: LAUR) is a global network of higher education institutions.
Why Do We Steer Clear of LAUR?
- Sluggish trends in its enrolled students suggest customers aren’t adopting its solutions as quickly as the company hoped
- Earnings per share fell by 9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Low free cash flow margin of 14.1% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Laureate Education is trading at $33.84 per share, or 17.3x forward P/E. Read our free research report to see why you should think twice about including LAUR in your portfolio.
La-Z-Boy (LZB)
Rolling One-Year Beta: 0.84
The prized possession of every mancave, La-Z-Boy (NYSE: LZB) is a furniture company specializing in recliners, sofas, and seats.
Why Should You Sell LZB?
- Annual revenue growth of 5.8% over the last five years was below our standards for the consumer discretionary sector
- Free cash flow margin is expected to remain in place over the coming year
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $38.16 per share, La-Z-Boy trades at 13.9x forward P/E. If you’re considering LZB for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Armstrong World (AWI)
Rolling One-Year Beta: 0.81
Started as a two-man shop dating back to the 1860s, Armstrong (NYSE: AWI) provides ceiling and wall products to commercial and residential spaces.
Why Are We Backing AWI?
- Impressive 11.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Highly efficient business model is illustrated by its impressive 24.7% operating margin, and its operating leverage amplified its profits over the last five years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.7% exceeded its revenue gains over the last two years
Armstrong World’s stock price of $189.23 implies a valuation ratio of 22.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% 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.
