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:
Target Hospitality (TH)
Rolling One-Year Beta: 0.71
Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ: TH) is a provider of specialty workforce lodging accommodations and services.
Why Are We Out on TH?
- Number of utilized beds has disappointed over the past two years, indicating weak demand for its offerings
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 10.1% annually
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Target Hospitality’s stock price of $8 implies a valuation ratio of 16.6x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than TH.
Radian Group (RDN)
Rolling One-Year Beta: 0.66
Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE: RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership.
Why Does RDN Fall Short?
- 3.2% annual declines in net premiums earned for the past five years indicates policy sales struggled this cycle
- Costs have risen faster than its revenue over the last two years, causing its combined ratio to worsen by 13.7 percentage points
- Earnings per share lagged its peers over the last two years as they only grew by 2.2% annually
At $36.04 per share, Radian Group trades at 1x forward P/B. Check out our free in-depth research report to learn more about why RDN doesn’t pass our bar.
One Stock to Buy:
Nicolet Bankshares (NIC)
Rolling One-Year Beta: 0.73
Starting as Green Bay Financial Corporation in 2000 before rebranding in 2002, Nicolet Bankshares (NYSE: NIC) is a regional bank holding company that provides commercial, agricultural, and consumer banking services primarily in Wisconsin, Michigan, and Minnesota.
Why Are We Backing NIC?
- Market share has increased this cycle as its 18.8% annual net interest income growth over the last five years was exceptional
- Projected net interest income growth of 54.4% for the next 12 months is above its five-year trend, pointing to accelerating demand
- Net interest margin increased by 65 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
Nicolet Bankshares is trading at $127.19 per share, or 1.5x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
