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. Keeping that in mind, here are two low-volatility stocks that could succeed under all market conditions and one stuck in limbo.
Rolling One-Year Beta: 0.94
With products estimated to save over 30,000 lives annually in traffic accidents worldwide, Autoliv (NYSE:ALV) develops and manufactures passive safety systems for vehicles, including airbags, seatbelts, and steering wheels that protect occupants during crashes.
Why Do We Think Twice About ALV?
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Sizable revenue base leads to growth challenges as its 2.7% annual revenue increases over the last two years fell short of other industrials companies
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Anticipated sales growth of 4.5% for the next year implies demand will be shaky
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Gross margin of 17.9% reflects its high production costs
At $126.60 per share, Autoliv trades at 12.4x forward P/E. Read our free research report to see why you should think twice about including ALV in your portfolio, it’s free.
Rolling One-Year Beta: 0.54
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
Why Will FCEL Outperform?
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Backlog has averaged 9.9% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
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Earnings per share grew by 25.9% annually over the last two years, massively outpacing its peers
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Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day
FuelCell Energy’s stock price of $8.07 implies a valuation ratio of 1.5x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Rolling One-Year Beta: 0.23
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE:UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
Why Are We Positive On UNH?
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Products and services resonate with customers, evidenced by its respectable 11.5% annualized sales growth over the last five years
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Enormous revenue base of $435.2 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
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ROIC punches in at 20.4%, illustrating management’s expertise in identifying profitable investments