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. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two stuck in limbo.
Two Stocks to Sell:
Church & Dwight (CHD)
Rolling One-Year Beta: 0.05
Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE: CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.
Why Are We Cautious About CHD?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Estimated sales growth of 3.4% for the next 12 months implies demand will slow from its three-year trend
- Earnings growth underperformed the sector average over the last three years as its EPS grew by just 4.7% annually
Church & Dwight’s stock price of $85.25 implies a valuation ratio of 22.9x forward P/E. To fully understand why you should be careful with CHD, check out our full research report (it’s free for active Edge members).
Hope Bancorp (HOPE)
Rolling One-Year Beta: 0.88
With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ: HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.
Why Do We Pass on HOPE?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Net interest income was flat over the last five years, indicating it’s failed to expand this cycle
- Earnings per share fell by 4% annually over the last five years while its revenue was flat, showing each sale was less profitable
Hope Bancorp is trading at $11.27 per share, or 0.6x forward P/B. If you’re considering HOPE for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
German American Bancorp (GABC)
Rolling One-Year Beta: 0.88
Founded in 1910 during a wave of community banking expansion in the Midwest, German American Bancorp (NASDAQ: GABC) is a financial holding company that provides banking, wealth management, and insurance services across southern Indiana and Kentucky.
Why Does GABC Stand Out?
- Net interest margin expanded by 35 basis points (100 basis points = 1 percentage point) over the last two years, providing additional flexibility for investments
- Operating profits are forecasted to increase over the next year as it scales and becomes more productive
- Annual tangible book value per share growth of 26.1% over the past two years was outstanding, reflecting strong capital accumulation this cycle
At $40.08 per share, German American Bancorp trades at 1.3x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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-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.
