A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here are two low-volatility stocks that could offer consistent gains and one stuck in limbo.
One Stock to Sell:
NV5 Global (NVEE)
Rolling One-Year Beta: 0.60
Operating from over 100 locations across the U.S. and internationally, NV5 Global (NASDAQ: NVEE) provides engineering, environmental, geospatial, and technical consulting services to public and private sector clients for infrastructure and building projects.
Why Are We Wary of NVEE?
- Earnings per share fell by 2.8% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Free cash flow margin shrank by 13.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Underwhelming 6.6% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
NV5 Global is trading at $22.56 per share, or 17x forward P/E. If you’re considering NVEE for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Adobe (ADBE)
Rolling One-Year Beta: 0.94
Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ: ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms.
Why Are We Fans of ADBE?
- Software is difficult to replicate at scale and leads to a best-in-class gross margin of 89.2%
- Excellent operating margin of 36.4% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
- ADBE is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $356.23 per share, Adobe trades at 6.2x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Federated Hermes (FHI)
Rolling One-Year Beta: 0.65
With roots dating back to 1955 and a pioneering role in money market funds, Federated Hermes (NYSE: FHI) is an investment management firm that offers a wide range of funds and strategies for institutional and individual investors.
Why Could FHI Be a Winner?
- Performance over the past two years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- ROE punches in at 24.7%, illustrating management’s expertise in identifying profitable investments
Federated Hermes’s stock price of $53.10 implies a valuation ratio of 11.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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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