Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here are two low-volatility stocks that could succeed under all market conditions and one that may not deliver the returns you need.
One Stock to Sell:
Accel Entertainment (ACEL)
Rolling One-Year Beta: 0.91
Established in Illinois, Accel Entertainment (NYSE: ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.
Why Should You Dump ACEL?
- Demand for its offerings was relatively low as its number of video gaming terminals sold has underwhelmed
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
Accel Entertainment’s stock price of $11.05 implies a valuation ratio of 13.1x forward P/E. Dive into our free research report to see why there are better opportunities than ACEL.
Two Stocks to Watch:
TJX (TJX)
Rolling One-Year Beta: 0.29
Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE: TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.
Why Does TJX Catch Our Eye?
- Same-store sales growth averaged 4% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Dominant market position is represented by its $58.98 billion in revenue, which compensates for its subpar gross margin
- ROIC punches in at 27.9%, illustrating management’s expertise in identifying profitable investments, and its returns are growing as it capitalizes on even better market opportunities
At $155.70 per share, TJX trades at 31.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Coca-Cola (KO)
Rolling One-Year Beta: 0.13
A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE: KO) is a storied beverage company best known for its flagship soda.
Why Could KO Be a Winner?
- Dominant market position is represented by its $47.65 billion in revenue, which gives it negotiating power with suppliers and retailers
- Products command premium prices and lead to a best-in-class gross margin of 61.1%
- Healthy operating margin of 25.7% shows it’s a well-run company with efficient processes, and its rise over the last year was fueled by some leverage on its fixed costs
Coca-Cola is trading at $70.47 per share, or 22.2x forward P/E. Is now a good 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 9 Market-Beating Stocks. 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.
