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. That said, here are two low-volatility stocks providing safe-and-steady growth and one that may not deliver the returns you need.
One Stock to Sell:
Fresh Del Monte Produce (FDP)
Rolling One-Year Beta: 0.23
Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.
Why Are We Out on FDP?
- Products fail to spark excitement with consumers, as seen in its flat sales over the last three years
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 8.2%
- Underwhelming 5.5% return on capital reflects management’s difficulties in finding profitable growth opportunities
Fresh Del Monte Produce is trading at $36.42 per share, or 43.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than FDP.
Two Stocks to Buy:
Kinsale Capital Group (KNSL)
Rolling One-Year Beta: 0.39
Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE:KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid.
Why Is KNSL a Good Business?
- Market penetration was impressive this cycle as its net premiums earned expanded by 23.8% annually over the last two years
- Balance sheet strength has increased this cycle as its 41.8% annual book value per share growth over the last two years was exceptional
- Expected book value per share growth of 26.3% for the next year suggests its capital position will strengthen considerably
Kinsale Capital Group’s stock price of $394.49 implies a valuation ratio of 4.6x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Erie Indemnity (ERIE)
Rolling One-Year Beta: 0.37
Operating under a unique business model dating back to 1925, Erie Indemnity (NASDAQ:ERIE) serves as the attorney-in-fact for Erie Insurance Exchange, managing policy issuance, claims handling, and investment services for this reciprocal insurer.
Why Are We Backing ERIE?
- Impressive 13.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Balance sheet strength has increased this cycle as its 13.1% annual book value per share growth over the last five years was exceptional
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $288.16 per share, Erie Indemnity trades at 21x 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
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. 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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