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 is one low-volatility stock that could succeed under all market conditions and two that may not deliver the returns you need.
Two Stocks to Sell:
Richardson Electronics (RELL)
Rolling One-Year Beta: 0.71
Founded in 1947, Richardson Electronics (NASDAQ: RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.
Why Do We Pass on RELL?
- Backlog has dropped by 2% on average over the past two years, suggesting it’s losing orders as competition picks up
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.4% for the last five years
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Richardson Electronics is trading at $9.81 per share, or 54.4x forward P/E. Check out our free in-depth research report to learn more about why RELL doesn’t pass our bar.
American Financial Group (AFG)
Rolling One-Year Beta: 0.57
With roots dating back to 1872 and a business model that empowers local decision-making, American Financial Group (NYSE: AFG) is an insurance holding company that specializes in commercial property and casualty insurance products for businesses through its Great American Insurance Group.
Why Are We Wary of AFG?
- Net premiums earned expanded by 4.8% annually over the last five years, falling below our expectations for the insurance sector
- Earnings per share fell by 4.5% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 4.8% annually over the last five years
American Financial Group’s stock price of $136.76 implies a valuation ratio of 2.4x forward P/B. Dive into our free research report to see why there are better opportunities than AFG.
One Stock to Watch:
Federated Hermes (FHI)
Rolling One-Year Beta: 0.66
With roots dating back to 1955 and a pioneering role in money market funds, Federated Hermes (NYSE: FHI) is an investment management firm that offers a wide range of funds and strategies for institutional and individual investors.
Why Are We Positive On FHI?
- Share buybacks catapulted its annual earnings per share growth to 22.7%, which outperformed its revenue gains over the last two years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $48.04 per share, Federated Hermes trades at 9.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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 Exlservice (+354% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
