Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here is one low-volatility stock that could succeed under all market conditions and two stuck in limbo.
Two Stocks to Sell:
FTI Consulting (FCN)
Rolling One-Year Beta: 0.52
With a team of experts deployed across 30+ countries to tackle complex business challenges, FTI Consulting (NYSE: FCN) is a global business advisory firm that helps organizations manage change, mitigate risk, and resolve disputes across financial, legal, operational, and regulatory matters.
Why Do We Think Twice About FCN?
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 3.1 percentage points
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 7.6% annually
- 6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
FTI Consulting is trading at $161.62 per share, or 19.8x forward P/E. Dive into our free research report to see why there are better opportunities than FCN.
Enterprise Financial Services (EFSC)
Rolling One-Year Beta: 0.91
Starting as a single bank in Missouri in 1988 and expanding through strategic growth, Enterprise Financial Services (NASDAQ: EFSC) is a financial holding company that offers banking, lending, and wealth management services to businesses and individuals across seven states.
Why Are We Wary of EFSC?
- Estimated net interest income growth of 4.2% for the next 12 months implies demand will slow from its five-year trend
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 25.7 basis points (100 basis points = 1 percentage point)
- Anticipated 1.1 percentage point rise in its efficiency ratio suggests its expenses will increase as a percentage of revenue
Enterprise Financial Services’s stock price of $61.34 implies a valuation ratio of 1.2x forward P/B. If you’re considering EFSC for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Visa (V)
Rolling One-Year Beta: 0.82
Processing over 829 million transactions daily and connecting billions of cards to 150 million merchant locations worldwide, Visa (NYSE: V) operates one of the world's largest electronic payments networks, facilitating secure money movement across more than 200 countries through its VisaNet processing platform.
Why Will V Beat the Market?
- Solid 11.2% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 14.3% exceeded its revenue gains over the last five years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $338.14 per share, Visa trades at 27.4x forward P/E. Is now the right time to buy? See for yourself in our full 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 5 Growth Stocks for this month. 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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