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.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here are two low-volatility stocks that could offer consistent gains and one that may not keep up.
One Stock to Sell:
Service International (SCI)
Rolling One-Year Beta: 0.50
Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.
Why Is SCI Risky?
- Demand for its offerings was relatively low as its number of funeral services performed has underwhelmed
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 14.3% for the last two years
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Service International is trading at $78.83 per share, or 19.2x forward P/E. If you’re considering SCI for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Monster (MNST)
Rolling One-Year Beta: 0.24
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ:MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Do We Love MNST?
- Excellent operating margin of 28% highlights the efficiency of its business model, and its profits increased over the last year as it scaled
- Strong free cash flow margin of 23.4% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $73.83 per share, Monster trades at 33.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Jack Henry (JKHY)
Rolling One-Year Beta: -0.03
Founded in 1976 by two entrepreneurs who saw the need for specialized banking software in the early days of financial computing, Jack Henry & Associates (NASDAQ:JKHY) provides technology solutions that help banks and credit unions innovate, differentiate, and compete while serving the evolving needs of their accountholders.
Why Does JKHY Catch Our Eye?
- Performance over the past two years shows its incremental sales were more profitable, as its annual earnings per share growth of 15.3% outpaced its revenue gains
- ROE punches in at 23.8%, illustrating management’s expertise in identifying profitable investments
Jack Henry’s stock price of $187.44 implies a valuation ratio of 29.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
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-small-cap company Comfort Systems (+782% 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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