Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here are two low-volatility stocks that could offer consistent gains and one that may not keep up.
One Stock to Sell:
AGCO (AGCO)
Rolling One-Year Beta: 0.04
With a history that features both organic growth and acquisitions, AGCO (NYSE: AGCO) designs, manufactures, and sells agricultural machinery and related technology.
Why Do We Pass on AGCO?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Earnings per share have dipped by 5.5% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Eroding returns on capital suggest its historical profit centers are aging
AGCO’s stock price of $121.25 implies a valuation ratio of 18.5x forward P/E. Read our free research report to see why you should think twice about including AGCO in your portfolio.
Two Stocks to Watch:
Allegion (ALLE)
Rolling One-Year Beta: 0.12
Allegion plc (NYSE: ALLE) is a provider of security products and solutions that keep people and assets safe and secure in various environments.
Why Does ALLE Stand Out?
- Highly efficient business model is illustrated by its impressive 19.8% operating margin, and its rise over the last five years was fueled by some leverage on its fixed costs
- Free cash flow margin grew by 6.1 percentage points over the last five years, giving the company more chips to play with
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Allegion is trading at $153.66 per share, or 16.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
First BanCorp (FBP)
Rolling One-Year Beta: 0.14
Tracing its roots back to 1948 in San Juan, First BanCorp (NYSE: FBP) is a bank holding company that provides commercial banking, consumer financing, mortgage services, and insurance products across Puerto Rico, the U.S. mainland, and the Caribbean.
Why Could FBP Be a Winner?
- High-yielding loan book and low cost of funds result in a best-in-class net interest margin of 4.8%
- Non-interest operating profits increased over the last five years as the firm gained some leverage on its fixed costs and became more efficient
- Share repurchases over the last five years enabled its annual earnings per share growth of 17.9% to outpace its revenue gains
At $27.53 per share, First BanCorp trades at 2x 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
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
