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 is one low-volatility stock that could offer consistent gains and two stuck in limbo.
Two Stocks to Sell:
Connection (CNXN)
Rolling One-Year Beta: 0.78
Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ:CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems.
Why Does CNXN Give Us Pause?
- 2.3% annual revenue growth over the last five years was slower than its business services peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 8.4% annually
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Connection is trading at $92.58 per share, or 20.8x forward P/E. If you’re considering CNXN for your portfolio, see our FREE research report to learn more.
Lincoln Financial Group (LNC)
Rolling One-Year Beta: 0.79
Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE:LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.
Why Are We Hesitant About LNC?
- Net premiums earned plateaued over the last five years, signaling weak incremental demand for its insurance policies
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 6.1% annually
- Book value per share tumbled by 14% annually over the last five years, showing insurance sector trends are working against it during this cycle
Lincoln Financial Group’s stock price of $39.69 implies a valuation ratio of 0.7x forward P/B. Check out our free in-depth research report to learn more about why LNC doesn’t pass our bar.
One Stock to Watch:
Costco (COST)
Rolling One-Year Beta: 0.00
Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ:COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.
Why Do We Watch COST?
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 7.1% growth over the past two years
- Unparalleled revenue scale of $303.2 billion offsets its poor gross margin and gives it advantageous pricing and terms with suppliers
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its rising returns show it’s making even more lucrative bets
At $915.74 per share, Costco trades at 39.9x 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
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.