Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here is one low-volatility stock providing safe-and-steady growth and two that may not deliver the returns you need.
Two Stocks to Sell:
Okta (OKTA)
Rolling One-Year Beta: 0.90
Named after the meteorological measurement for cloud cover, Okta (NASDAQ: OKTA) provides cloud-based identity management solutions that help organizations securely connect their employees, partners, and customers to the right applications and services.
Why Does OKTA Fall Short?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 10.2% underwhelmed
- Estimated sales growth of 9.2% for the next 12 months implies demand will slow from its two-year trend
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 3.8 percentage points
At $90.70 per share, Okta trades at 5.5x forward price-to-sales. Check out our free in-depth research report to learn more about why OKTA doesn’t pass our bar.
Amdocs (DOX)
Rolling One-Year Beta: 0.49
Powering the digital experiences of approximately 400 communications companies worldwide, Amdocs (NASDAQ: DOX) provides software and services that help telecommunications and media companies manage customer relationships, monetize services, and automate network operations.
Why Should You Sell DOX?
- Backlog failed to grow over the past two years, suggesting the company may need to tweak its product roadmap and go-to-market strategy
- Anticipated sales growth of 3.3% for the next year implies demand will be shaky
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2.4 percentage points
Amdocs’s stock price of $81.80 implies a valuation ratio of 11.1x forward P/E. To fully understand why you should be careful with DOX, check out our full research report (it’s free).
One Stock to Watch:
Globus Medical (GMED)
Rolling One-Year Beta: 0.79
With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE: GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.
Why Are We Positive On GMED?
- Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 58.8% over the past two years
- Estimated revenue growth of 12.6% for the next 12 months implies its momentum over the last two years will continue
- Earnings per share have massively outperformed its peers over the last five years, increasing by 21.6% annually
Globus Medical is trading at $91.56 per share, or 22.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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 9 Market-Beating Stocks. 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.
