Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock providing safe-and-steady growth and two stuck in limbo.
Two Stocks to Sell:
Lindsay (LNN)
Rolling One-Year Beta: 0.66
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE: LNN) provides a variety of proprietary water management and road infrastructure products and services.
Why Are We Cautious About LNN?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Waning returns on capital imply its previous profit engines are losing steam
Lindsay is trading at $132.78 per share, or 20.9x forward P/E. To fully understand why you should be careful with LNN, check out our full research report (it’s free).
First American Financial (FAF)
Rolling One-Year Beta: 0.77
Tracing its roots back to 1889 when California was experiencing its first major real estate boom, First American Financial (NYSE: FAF) provides title insurance, settlement services, and risk solutions for residential and commercial real estate transactions across the United States and internationally.
Why Should You Dump FAF?
- Annual revenue growth of 1.2% over the last five years was below our standards for the insurance sector
- Net premiums earned remained stagnant over the last five years, indicating expansion challenges this cycle
- Earnings per share were flat over the last five years and fell short of the peer group average
First American Financial’s stock price of $67.09 implies a valuation ratio of 1.2x forward P/B. Read our free research report to see why you should think twice about including FAF in your portfolio.
One Stock to Buy:
EXL (EXLS)
Rolling One-Year Beta: 0.67
Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ: EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.
Why Are We Backing EXLS?
- Impressive 16% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share repurchases over the last five years enabled its annual earnings per share growth of 24.4% to outpace its revenue gains
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $31.23 per share, EXL trades at 15.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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.
