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 providing safe-and-steady growth and two stuck in limbo.
Two Stocks to Sell:
Landstar (LSTR)
Rolling One-Year Beta: 0.87
Covering billions of miles throughout North America, Landstar (NASDAQ: LSTR) is a transportation company specializing in freight and last-mile delivery services.
Why Should You Sell LSTR?
- Sales tumbled by 12.7% annually over the last two years, showing market trends are working against its favor during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Eroding returns on capital suggest its historical profit centers are aging
Landstar’s stock price of $133.50 implies a valuation ratio of 23.9x forward P/E. If you’re considering LSTR for your portfolio, see our FREE research report to learn more.
MarketAxess (MKTX)
Rolling One-Year Beta: -0.18
Pioneering the shift from phone-based to electronic bond trading since 2000, MarketAxess (NASDAQ: MKTX) operates electronic trading platforms that enable institutional investors and broker-dealers to efficiently trade fixed-income securities like corporate and government bonds.
Why Is MKTX Risky?
- Annual revenue growth of 6.4% over the last five years was below our standards for the financials sector
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 2.7% annually
MarketAxess is trading at $187.60 per share, or 23.7x forward P/E. Read our free research report to see why you should think twice about including MKTX in your portfolio.
One Stock to Buy:
Merck (MRK)
Rolling One-Year Beta: 0.42
With roots dating back to 1891 and a portfolio that includes the blockbuster cancer immunotherapy Keytruda, Merck (NYSE: MRK) develops and sells prescription medicines, vaccines, and animal health products across oncology, infectious diseases, cardiovascular, and other therapeutic areas.
Why Are We Backing MRK?
- Massive revenue base of $63.62 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Adjusted operating margin improvement of 18.6 percentage points over the last two years demonstrates its ability to scale efficiently
- Free cash flow margin expanded by 10.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $84.13 per share, Merck trades at 9.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 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-small-cap company Comfort Systems (+782% 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.
