2 Safe-and-Steady Stocks with Competitive Advantages and 1 We Ignore

GWRE Cover Image

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 that could offer consistent gains and one that may not keep up.

One Stock to Sell:

Ingredion (INGR)

Rolling One-Year Beta: 0.21

Known for its ability to turn ordinary corn into thousands of different food ingredients, Ingredion (NYSE: INGR) transforms grains, fruits, vegetables and other plant-based materials into specialty starches, sweeteners and other ingredients for food, beverage and industrial markets.

Why Does INGR Worry Us?

  1. Products have few die-hard fans as sales have declined by 3.1% annually over the last three years
  2. Projected sales growth of 1.9% for the next 12 months suggests sluggish demand
  3. 8.3 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position

At $115 per share, Ingredion trades at 10.5x forward P/E. If you’re considering INGR for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Guidewire Software (GWRE)

Rolling One-Year Beta: 0.92

With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE: GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.

Why Are We Positive On GWRE?

  1. Billings growth has averaged 20.7% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
  2. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
  3. Solid free cash flow generation relative to most peers gives it a cushion and grants it various reinvestment opportunities

Guidewire Software’s stock price of $123.00 implies a valuation ratio of 7.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

AMETEK (AME)

Rolling One-Year Beta: 0.86

Started from its humble beginnings in motor repair, AMETEK (NYSE: AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.

Why Do We Like AME?

  1. Solid 10.3% annual revenue growth over the last five years indicates its offering’s solve complex business issues
  2. Excellent operating margin of 25.1% highlights the efficiency of its business model, and its profits increased over the last five years as it scaled
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business

AMETEK is trading at $229.96 per share, or 28.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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