Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock providing safe-and-steady growth and two stuck in limbo.
Two Stocks to Sell:
Agilysys (AGYS)
Rolling One-Year Beta: 0.69
With a tech stack that powers everything from check-in to checkout at some of the world's top hospitality venues, Agilysys (NASDAQ: AGYS) develops and provides cloud-based and on-premise software solutions for hotels, resorts, casinos, and restaurants to manage operations and enhance guest experiences.
Why Is AGYS Not Exciting?
- 13.7% annual revenue growth over the last five years was slower than its software peers
- Gross margin of 62.1% reflects its relatively high servicing costs
- Operating margin was unchanged over the last year, suggesting it failed to gain leverage on its fixed costs
At $108.68 per share, Agilysys trades at 9.6x forward price-to-sales. Check out our free in-depth research report to learn more about why AGYS doesn’t pass our bar.
Mattel (MAT)
Rolling One-Year Beta: 0.85
Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel (NASDAQ: MAT) is a global children's entertainment company specializing in the design and production of consumer products.
Why Are We Hesitant About MAT?
- Muted 2.7% annual revenue growth over the last two years shows its demand lagged behind its consumer discretionary peers
- Anticipated sales growth of 3.2% for the next year implies demand will be shaky
- Diminishing returns on capital suggest its earlier profit pools are drying up
Mattel’s stock price of $18.02 implies a valuation ratio of 11.2x forward P/E. To fully understand why you should be careful with MAT, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Coca-Cola (KO)
Rolling One-Year Beta: 0.20
A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE: KO) is a storied beverage company best known for its flagship soda.
Why Could KO Be a Winner?
- Customer loyalty and massive revenue base of $47.23 billion makes it a household name that influences purchasing decisions
- Differentiated product offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 61.1%
- Excellent operating margin of 25.1% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last year
Coca-Cola is trading at $66.75 per share, or 21.6x 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
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-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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