Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two that may not keep up.
Two Stocks to Sell:
J. M. Smucker (SJM)
Rolling One-Year Beta: 0.31
Best known for its fruit jams and spreads, J.M Smucker (NYSE: SJM) is a packaged foods company whose products span from peanut butter and coffee to pet food.
Why Are We Bearish on SJM?
- Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Projected sales decline of 2.3% for the next 12 months points to a tough demand environment ahead
- ROIC of 1.3% reflects management’s challenges in identifying attractive investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
J. M. Smucker is trading at $118.89 per share, or 11.9x forward P/E. If you’re considering SJM for your portfolio, see our FREE research report to learn more.
Werner (WERN)
Rolling One-Year Beta: 0.76
Conducting business in over a 100 countries, Werner (NASDAQ: WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.
Why Should You Sell WERN?
- Muted 1.3% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 39.2% annually
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $33.97 per share, Werner trades at 19.8x forward P/E. To fully understand why you should be careful with WERN, check out our full research report (it’s free).
One Stock to Buy:
Gorman-Rupp (GRC)
Rolling One-Year Beta: 0.42
Powering fluid dynamics since 1934, Gorman-Rupp (NYSE: GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.
Why Is GRC a Top Pick?
- Market share has increased this cycle as its 14.7% annual revenue growth over the last five years was exceptional
- Additional sales over the last two years increased its profitability as the 28% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 12.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Gorman-Rupp’s stock price of $74.46 implies a valuation ratio of 25.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
