Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here is one low-volatility stock that could offer consistent gains and two stuck in limbo.
Two Stocks to Sell:
Q2 Holdings (QTWO)
Rolling One-Year Beta: 0.59
With a platform powering digital services for approximately 25 million account holders across America, Q2 Holdings (NYSE: QTWO) provides cloud-based digital solutions that help financial institutions, fintechs, and alternative finance companies deliver modern banking experiences to their customers.
Why Does QTWO Give Us Pause?
- Products, pricing, or go-to-market strategy may need some adjustments as its 7.7% average billings growth over the last year was weak
- Estimated sales growth of 9.6% for the next 12 months implies demand will slow from its two-year trend
- Bad unit economics and steep infrastructure costs are reflected in its gross margin of 57%, one of the worst among software companies
Q2 Holdings’s stock price of $58.87 implies a valuation ratio of 4.1x forward price-to-sales. If you’re considering QTWO for your portfolio, see our FREE research report to learn more.
Rush Enterprises (RUSHA)
Rolling One-Year Beta: 0.46
Headquartered in Texas, Rush Enterprises (NASDAQ: RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.
Why Do We Think Twice About RUSHA?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.3% annually over the last two years
- Earnings per share have dipped by 6.3% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
Rush Enterprises is trading at $48.93 per share, or 18.1x forward P/E. To fully understand why you should be careful with RUSHA, check out our full research report (it’s free).
One Stock to Buy:
Talos Energy (TALO)
Rolling One-Year Beta: -1.17
Operating its own deepwater production facilities with names like Tarantula, Pompano, and Brutus, Talos Energy (NYSE: TALO) explores for and produces oil and natural gas from offshore wells in the Gulf of Mexico and offshore Mexico.
What Makes TALO Stand Out?
- Annual revenue growth of 20.3% over the last nine years was superb and indicates its market share increased during this cycle
- Highly-profitable operating model results in strong unit economics and a best-in-class gross margin of 72.5%
- Robust free cash flow margin of 18.6% gives it many options for capital deployment
At $16.91 per share, Talos Energy trades at 10.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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 Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
