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. Keeping that in mind, here is one low-volatility stock providing safe-and-steady growth and two stuck in limbo.
Two Stocks to Sell:
Hilltop Holdings (HTH)
Rolling One-Year Beta: 0.71
Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings (NYSE: HTH) is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.
Why Are We Out on HTH?
- Flat net interest income over the last five years suggest it must find different ways to grow during this cycle
- Overall productivity is expected to decrease over the next year as Wall Street thinks its efficiency ratio will degrade by 32.3 percentage points
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 11.6% annually, worse than its revenue
Hilltop Holdings’s stock price of $35.08 implies a valuation ratio of 1x forward P/B. Read our free research report to see why you should think twice about including HTH in your portfolio.
First Hawaiian Bank (FHB)
Rolling One-Year Beta: 0.94
Dating back to 1858 as Hawaii's oldest bank with deep roots in the Pacific island communities, First Hawaiian (NASDAQ: FHB) operates a full-service community bank providing deposit accounts, commercial and consumer loans, credit cards, and wealth management services across Hawaii, Guam, and Saipan.
Why Are We Hesitant About FHB?
- 4% annual net interest income growth over the last five years was slower than its banking peers
- Net interest margin of 3% is well below other banks, signaling its loans aren’t very profitable
- Tangible book value per share stagnated over the last five years, limiting its ability to leverage its balance sheet to make additional investments
First Hawaiian Bank is trading at $25.91 per share, or 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than FHB.
One Stock to Buy:
Texas Roadhouse (TXRH)
Rolling One-Year Beta: 0.55
With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.
Why Is TXRH a Good Business?
- Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth
- Same-store sales growth over the past two years shows it’s successfully drawing diners into its restaurants
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $172 per share, Texas Roadhouse trades at 24x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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 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-micro-cap company Kadant (+351% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
