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.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here are two low-volatility stocks that could offer consistent gains and one that may not deliver the returns you need.
One stock to sell:
Schneider (SNDR)
Rolling one-year beta: 0.36
Employing thousands of drivers across the country to make deliveries, Schneider (NYSE: SNDR) makes full truckload and intermodal deliveries regionally and across borders.
Why Do We Steer Clear of SNDR?
- 2.4% annual revenue growth over the last five years was slower than its industrials peers
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 15.7% annually while its revenue grew
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Schneider is trading at $29.25 per share, or 19.7x forward P/E. Check out our free in-depth research report to learn more about why SNDR doesn’t pass our bar.
Two stocks to watch:
Zscaler (ZS)
Rolling one-year beta: 0.73
Pioneering the "zero trust" approach that has fundamentally changed enterprise network security, Zscaler (NASDAQ: ZS) provides a cloud-based security platform that connects users, devices, and applications securely without traditional network-based security hardware.
Why Will ZS Outperform?
- ARR growth averaged 25.2% over the last year, showing customers are willing to take multi-year bets on its software
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Strong free cash flow margin of 23.2% enables it to reinvest or return capital consistently
Zscaler’s stock price of $237.07 implies a valuation ratio of 10.2x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
CACI (CACI)
Rolling one-year beta: 0.93
Founded to commercialize SIMSCRIPT, CACI International (NYSE: CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.
Why Are We Positive on CACI?
- Impressive 11.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Estimated revenue growth of 12.7% for the next 12 months implies its momentum over the last two years will continue
- Earnings per share grew by 16.4% annually over the last two years, massively outpacing its peers
At $675.71 per share, CACI trades at 19.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks we like even more
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
