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 succeed under all market conditions and two that may not deliver the returns you need.

Two Stocks to Sell:

Hormel Foods (HRL)

Rolling One-Year Beta: 0.22

Best known for its SPAM brand, Hormel (NYSE:HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads.

Why Does HRL Worry Us?

1. Falling unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Gross margin of 16.7% is an output of its commoditized products
3. Performance over the past three years shows each sale was less profitable, as its earnings per share fell by 4.9% annually

At $29.40 per share, Hormel Foods trades at 17.2x forward P/E. If you’re considering HRL for your portfolio, see our FREE research report to learn more.

A. O. Smith (AOS)

Rolling One-Year Beta: 0.70

Credited with the invention of the glass-lined water heater, A.O. Smith (NYSE:AOS) manufactures water heating and treatment products for various industries.

Why Does AOS Fall Short?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Anticipated sales growth of 2.4% for the next year implies demand will be shaky
3. 7.5 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

A. O. Smith’s stock price of $67.11 implies a valuation ratio of 17.5x forward P/E. Check out our free in-depth research report to learn more about why AOS doesn’t pass our bar.

One Stock to Watch:

Zoetis (ZTS)

Rolling One-Year Beta: 0.30

Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.

Why Is ZTS Interesting?

1. Average constant currency growth of 9% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

Zoetis is trading at $155.64 per share, or 25x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks That Overcame Trump’s 2018 Tariffs

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.