Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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 providing safe-and-steady growth and one that may not keep up.
One Stock to Sell:
Interface (TILE)
Rolling One-Year Beta: 0.77
Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ:TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions.
Why Are We Cautious About TILE?
- 1.8% annual revenue growth over the last five years was slower than its business services peers
- Earnings per share lagged its peers over the last five years as they only grew by 1.9% annually
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $26.16 per share, Interface trades at 14.3x forward EV-to-EBITDA. To fully understand why you should be careful with TILE, check out our full research report (it’s free).
Two Stocks to Watch:
KBR (KBR)
Rolling One-Year Beta: 0.84
Known for projects like the construction of Guantanamo Bay, KBR provides professional services and technologies, specializing in engineering, construction, and government services sectors.
Why Do We Like KBR?
- Annual revenue growth of 9.9% over the last two years beat the sector average and underscores the unique value of its offerings
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
KBR is trading at $50.38 per share, or 12.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Cencora (COR)
Rolling One-Year Beta: 0.18
Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE:COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.
Why Is COR a Top Pick?
- Enormous revenue base of $316.7 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
- Share buybacks catapulted its annual earnings per share growth to 15.2%, which outperformed its revenue gains over the last five years
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Cencora’s stock price of $303.23 implies a valuation ratio of 17.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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-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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