A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
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 are two low-volatility stocks that could succeed under all market conditions and one stuck in limbo.
One Stock to Sell:
MSCI (MSCI)
Rolling One-Year Beta: 0.71
Originally known as Morgan Stanley Capital International before becoming independent in 2007, MSCI (NYSE: MSCI) provides critical decision support tools, indexes, and analytics that help global investors understand risk and return factors and build more effective investment portfolios.
Why Are We Wary of MSCI?
- Negative return on equity shows management lost money while trying to expand the business
At $563.09 per share, MSCI trades at 26.6x forward P/E. Dive into our free research report to see why there are better opportunities than MSCI.
Two Stocks to Watch:
Parker-Hannifin (PH)
Rolling One-Year Beta: 0.67
Founded in 1917, Parker Hannifin (NYSE: PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets.
Why Is PH Interesting?
- Healthy operating margin of 19.1% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
- Share repurchases over the last five years enabled its annual earnings per share growth of 16.6% to outpace its revenue gains
- 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
Parker-Hannifin’s stock price of $962.03 implies a valuation ratio of 26.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Darling Ingredients (DAR)
Rolling One-Year Beta: 0.17
Turning what others consider waste into valuable resources, Darling Ingredients (NYSE: DAR) collects and transforms animal by-products, used cooking oil, and other bio-nutrients into valuable ingredients for food, feed, fuel, and industrial applications.
Why Are We Positive on DAR?
- Operating margin increased by 9.5 percentage points over the last year as it refined its cost structure
- Free cash flow margin jumped by 3.8 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- ROIC punches in at 16.1%, illustrating management’s expertise in identifying profitable investments
Darling Ingredients is trading at $61.66 per share, or 9.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
