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. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two stuck in limbo.
Two Stocks to Sell:
Honeywell (HON)
Rolling One-Year Beta: 0.73
Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ:HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.
Why Are We Hesitant About HON?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Forecasted revenue decline of 3.3% for the upcoming 12 months implies demand will fall off a cliff
- Eroding returns on capital suggest its historical profit centers are aging
Honeywell’s stock price of $191.70 implies a valuation ratio of 18.7x forward P/E. Read our free research report to see why you should think twice about including HON in your portfolio.
TriCo Bancshares (TCBK)
Rolling One-Year Beta: 0.93
Founded in 1975 and headquartered in Chico, California, TriCo Bancshares (NASDAQ:TCBK) operates Tri Counties Bank, providing personal, small business, and commercial banking services through branches across California.
Why Are We Cautious About TCBK?
- Annual net interest income growth of 6% over the last five years was below our standards for the banking sector
- Net interest margin shrank by 17 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 4.2% annually, worse than its revenue
At $48.10 per share, TriCo Bancshares trades at 1.2x forward P/B. Check out our free in-depth research report to learn more about why TCBK doesn’t pass our bar.
One Stock to Buy:
Abercrombie and Fitch (ANF)
Rolling One-Year Beta: 0.80
Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE:ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.
Why Do We Love ANF?
- Same-store sales growth averaged 11.9% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Differentiated product assortment results in a best-in-class gross margin of 63.3%
- Share buybacks catapulted its annual earnings per share growth to 189%, which outperformed its revenue gains over the last three years
Abercrombie and Fitch is trading at $97.04 per share, or 9.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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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