Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here is one low-volatility stock providing safe-and-steady growth and two that may not deliver the returns you need.
Two Stocks to Sell:
Pool (POOL)
Rolling One-Year Beta: 0.54
Founded in 1993 and headquartered in Louisiana, Pool (NASDAQ: POOL) is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products.
Why Do We Avoid POOL?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Projected sales growth of 2.5% for the next 12 months suggests sluggish demand
- Eroding returns on capital suggest its historical profit centers are aging
At $295.37 per share, Pool trades at 25.7x forward P/E. Check out our free in-depth research report to learn more about why POOL doesn’t pass our bar.
Cadre (CDRE)
Rolling One-Year Beta: 0.79
Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Are We Hesitant About CDRE?
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 1.7 percentage points
- Flat earnings per share over the last four years underperformed the sector average
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7 percentage points
Cadre is trading at $38.69 per share, or 26.5x forward P/E. To fully understand why you should be careful with CDRE, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Ross Stores (ROST)
Rolling One-Year Beta: 0.66
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ: ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Are We Fans of ROST?
- Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
- Same-store sales growth averaged 3.1% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Ross Stores’s stock price of $149.50 implies a valuation ratio of 22.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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 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-micro-cap company Kadant (+351% 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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