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 providing safe-and-steady growth and one that may not deliver the returns you need.
One Stock to Sell:
Genpact (G)
Rolling One-Year Beta: 0.94
Originally spun off from General Electric in 2005 to provide business process services, Genpact (NYSE:G) is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions.
Why Are We Wary of G?
- Estimated sales growth of 4.8% for the next 12 months is soft and implies weaker demand
- Free cash flow margin dropped by 3.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Genpact’s stock price of $41.33 implies a valuation ratio of 11.4x forward P/E. Check out our free in-depth research report to learn more about why G doesn’t pass our bar.
Two Stocks to Watch:
CBIZ (CBZ)
Rolling One-Year Beta: 0.85
With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE:CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations.
Why Does CBZ Stand Out?
- Annual revenue growth of 26.6% over the past two years was outstanding, reflecting market share gains this cycle
- Exciting sales outlook for the upcoming 12 months calls for 45.6% growth, an acceleration from its two-year trend
- Earnings per share grew by 29.6% annually over the last two years, massively outpacing its peers
CBIZ is trading at $55.81 per share, or 14.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
First Commonwealth Financial (FCF)
Rolling One-Year Beta: 0.90
Tracing its roots back to the Great Depression era of 1934, First Commonwealth Financial (NYSE:FCF) is a financial holding company that provides consumer and commercial banking, wealth management, and insurance services across Pennsylvania and Ohio.
Why Are We Fans of FCF?
- Projected net interest income growth of 11.2% for the next 12 months indicates demand will rise above its five-year trend
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 9.6% over the last five years outstripped its revenue performance
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $17.25 per share, First Commonwealth Financial trades at 1.2x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking 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 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 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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