Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
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 succeed under all market conditions and one that may not keep up.
One Stock to Sell:
DXC (DXC)
Rolling One-Year Beta: 0.89
Born from the 2017 merger of Computer Sciences Corporation and HP Enterprise's services business, DXC Technology (NYSE:DXC) is a global IT services company that helps businesses transform their technology infrastructure, applications, and operations.
Why Are We Out on DXC?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Flat earnings per share over the last five years underperformed the sector average
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $10.82 per share, DXC trades at 4x forward P/E. Check out our free in-depth research report to learn more about why DXC doesn’t pass our bar.
Two Stocks to Watch:
Clean Harbors (CLH)
Rolling One-Year Beta: -0.02
Established in 1980, Clean Harbors (NYSE:CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.
Why Do We Like CLH?
- Impressive 13.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin jumped by 5.9 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Clean Harbors’s stock price of $316.05 implies a valuation ratio of 31.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Caterpillar (CAT)
Rolling One-Year Beta: 0.76
With its iconic yellow machinery working on construction sites, Caterpillar (NYSE:CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.
Why Is CAT Interesting?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 10.2% annual sales growth over the last five years
- Share repurchases over the last five years enabled its annual earnings per share growth of 21.7% to outpace its revenue gains
- Free cash flow margin expanded by 6.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Caterpillar is trading at $804.25 per share, or 28.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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.