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. That said, here is one low-volatility stock that could offer consistent gains and two that may not keep up.
Two Stocks to Sell:
Marqeta (MQ)
Rolling One-Year Beta: 0.86
Powering the cards behind innovative fintech services like Block's Cash App, Marqeta (NASDAQ:MQ) provides a cloud-based platform that allows businesses to create customized payment card programs and process card transactions.
Why Does MQ Fall Short?
- Annual sales declines of 12.1% for the past two years show its products and services struggled to connect with the market
- Steep infrastructure costs and weaker unit economics for a software company are reflected in its low gross margin of 70.6%
- Operating margin declined by 4 percentage points over the last year as its sales cratered
At $4.75 per share, Marqeta trades at 3x forward price-to-sales. Check out our free in-depth research report to learn more about why MQ doesn’t pass our bar.
LGI Homes (LGIH)
Rolling One-Year Beta: 0.91
Based in Texas, LGI Homes (NASDAQ:LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States.
Why Should You Dump LGIH?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 10.4% declines over the past two years
- Eroding returns on capital suggest its historical profit centers are aging
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
LGI Homes’s stock price of $49.56 implies a valuation ratio of 12.6x forward P/E. Read our free research report to see why you should think twice about including LGIH in your portfolio.
One Stock to Watch:
Republic Services (RSG)
Rolling One-Year Beta: 0.30
Processing several million tons of recyclables annually, Republic (NYSE:RSG) provides waste management services for residences, companies, and municipalities.
Why Does RSG Stand Out?
- Annual revenue growth of 10.2% over the last five years beat the sector average and underscores the unique value of its offerings
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 18.9%, and its rise over the last five years was fueled by some leverage on its fixed costs
- Strong free cash flow margin of 13.8% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
Republic Services is trading at $219.13 per share, or 30.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. 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 Exlservice (+354% 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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