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 that could succeed under all market conditions and two that may not deliver the returns you need.
Two Stocks to Sell:
Carriage Services (CSV)
Rolling One-Year Beta: 0.62
Established in 1991, Carriage Services (NYSE: CSV) is a provider of funeral and cemetery services in the United States.
Why Is CSV Risky?
- Muted 5.7% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
- Poor free cash flow margin of 12.6% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
Carriage Services’s stock price of $43.10 implies a valuation ratio of 12.9x forward P/E. If you’re considering CSV for your portfolio, see our FREE research report to learn more.
Prosperity Bancshares (PB)
Rolling One-Year Beta: 0.69
With a network of banking centers spanning the Lone Star State and beyond, Prosperity Bancshares (NYSE: PB) operates full-service banking locations throughout Texas and Oklahoma, offering a wide range of financial products and services to businesses and consumers.
Why Do We Pass on PB?
- Annual revenue growth of 1.6% over the last five years was below our standards for the banking sector
- Net interest income trends were unexciting over the last five years as its 1.3% annual growth was below the typical banking firm
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
Prosperity Bancshares is trading at $69.92 per share, or 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than PB.
One Stock to Watch:
Amgen (AMGN)
Rolling One-Year Beta: 0.22
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Why Does AMGN Stand Out?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 15.8% annual sales growth over the last two years
- Economies of scale give it more fixed cost leverage than its smaller competitors
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
At $328.43 per share, Amgen trades at 15.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. 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 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 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.
