Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here are two low-volatility stocks providing safe-and-steady growth and one that may not keep up.
One Stock to Sell:
Zoom (ZM)
Rolling One-Year Beta: 0.89
Once the verb that defined remote work during the pandemic ("let's Zoom later"), Zoom (NASDAQ: ZM) provides a cloud-based platform for video meetings, phone calls, team chat, and collaboration tools that helps businesses and individuals connect virtually.
Why Do We Steer Clear of ZM?
- Average billings growth of 4.4% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Competitive market dynamics make it difficult to retain customers, leading to a weak 98% net revenue retention rate
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.2%
Zoom’s stock price of $78.33 implies a valuation ratio of 4.9x forward price-to-sales. Check out our free in-depth research report to learn more about why ZM doesn’t pass our bar.
Two Stocks to Buy:
AutoZone (AZO)
Rolling One-Year Beta: 0.29
Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE: AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
Why Is AZO a Top Pick?
- Same-store sales growth lends it the confidence to gradually expand its store base so it can reach more customers
- Unique assortment of products and pricing power lead to a best-in-class gross margin of 52.9%
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 19.8%
AutoZone is trading at $3,846 per share, or 25.1x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
FTAI Aviation (FTAI)
Rolling One-Year Beta: 0.78
With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ: FTAI) sells, leases, maintains, and repairs aircraft engines.
Why Should You Buy FTAI?
- Impressive 43.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 82.4% over the last two years outstripped its revenue performance
- Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability
At $157.60 per share, FTAI Aviation trades at 25.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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-micro-cap company Tecnoglass (+1,754% 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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