Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two stuck in limbo.
Two Stocks to Sell:
LKQ (LKQ)
Rolling One-Year Beta: 0.37
A global distributor of vehicle parts and accessories, LKQ (NASDAQ: LKQ) offers its customers a comprehensive selection of high-quality, affordably priced automobile products.
Why Do We Avoid LKQ?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
LKQ is trading at $30.62 per share, or 9.5x forward P/E. Read our free research report to see why you should think twice about including LKQ in your portfolio.
Plug Power (PLUG)
Rolling One-Year Beta: 0.73
Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ: PLUG) provides hydrogen fuel cells used to power electric motors.
Why Does PLUG Fall Short?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 12.8% annually over the last two years
- Cash-burning history makes us doubt the long-term viability of its business model
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Plug Power’s stock price of $2.50 implies a valuation ratio of 3.6x forward price-to-sales. Check out our free in-depth research report to learn more about why PLUG doesn’t pass our bar.
One Stock to Watch:
Inter Parfums (IPAR)
Rolling One-Year Beta: 0.90
With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ: IPAR) manufactures and distributes fragrances worldwide.
Why Do We Like IPAR?
- Strong consumer demand for its brand drove 14.1% annual revenue growth over the last three years, outperforming sector peers
- Unique products and pricing power result in a stellar gross margin of 56%
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $87.67 per share, Inter Parfums trades at 16.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our 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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