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1 Safe-and-Steady Stock to Consider Right Now and 2 We Turn Down

EPC 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.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, 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:

Edgewell Personal Care (EPC)

Rolling One-Year Beta: 0.50

Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE: EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.

Why Do We Think EPC Will Underperform?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 4.5 percentage points
  3. Free cash flow margin shrank by 5.9 percentage points over the last year, suggesting the company is consuming more capital to stay competitive

Edgewell Personal Care’s stock price of $17.76 implies a valuation ratio of 7.4x forward P/E. Read our free research report to see why you should think twice about including EPC in your portfolio.

First American Financial (FAF)

Rolling One-Year Beta: 0.77

Tracing its roots back to 1889 when California was experiencing its first major real estate boom, First American Financial (NYSE: FAF) provides title insurance, settlement services, and risk solutions for residential and commercial real estate transactions across the United States and internationally.

Why Are We Out on FAF?

  1. 1.2% annual revenue growth over the last five years was slower than its insurance peers
  2. Insurance offerings faced market headwinds this cycle, reflected in stagnant net premiums earned over the last five years
  3. Flat earnings per share over the last five years lagged its peers

First American Financial is trading at $63.92 per share, or 1.2x forward P/B. Check out our free in-depth research report to learn more about why FAF doesn’t pass our bar.

One Stock to Watch:

Abbott Laboratories (ABT)

Rolling One-Year Beta: 0.34

With roots dating back to 1888 when founder Dr. Wallace Abbott began producing precise, dosage-form medications, Abbott Laboratories (NYSE: ABT) develops and sells a diverse range of healthcare products including medical devices, diagnostics, nutrition products, and branded generic pharmaceuticals.

Why Could ABT Be a Winner?

  1. Economies of scale in a highly regulated sector make the company difficult to replace, giving it meaningful negotiating power
  2. Share repurchases have increased shareholder returns as its annual earnings per share growth of 9.6% exceeded its revenue gains over the last five years
  3. Strong free cash flow margin of 16.8% enables it to reinvest or return capital consistently

At $126.62 per share, Abbott Laboratories trades at 23.2x forward P/E. Is now the time to initiate a position? See for yourself 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 5 Growth Stocks for this month. 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.

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