Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two that may not keep up.
Two Stocks to Sell:
The New York Times (NYT)
Rolling One-Year Beta: 0.51
Founded in 1851, The New York Times (NYSE:NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
Why Does NYT Fall Short?
- Number of subscribers has disappointed over the past two years, indicating weak demand for its offerings
- Anticipated sales growth of 6.9% for the next year implies demand will be shaky
- Waning returns on capital imply its previous profit engines are losing steam
At $57.49 per share, The New York Times trades at 25.6x forward P/E. Dive into our free research report to see why there are better opportunities than NYT.
Molson Coors (TAP)
Rolling One-Year Beta: 0.28
Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE:TAP) is a global brewing giant with a rich history dating back more than two centuries.
Why Does TAP Give Us Pause?
- Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend
- Underwhelming 3.8% return on capital reflects management’s difficulties in finding profitable growth opportunities
Molson Coors is trading at $50.69 per share, or 8.3x forward P/E. To fully understand why you should be careful with TAP, check out our full research report (it’s free).
One Stock to Watch:
LegalZoom (LZ)
Rolling One-Year Beta: 0.95
Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ:LZ) offers online legal services and documentation assistance for individuals and businesses.
Why Are We Positive On LZ?
- Subscription Units have increased by an average of 11.7% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Share repurchases over the last three years enabled its annual earnings per share growth of 177% to outpace its revenue gains
- Free cash flow margin grew by 14.9 percentage points over the last few years, giving the company more chips to play with
LegalZoom’s stock price of $11 implies a valuation ratio of 11.1x forward EV/EBITDA. Is now the time to initiate a position? 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 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
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