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.
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 providing safe-and-steady growth and two that may not keep up.
Two Stocks to Sell:
QCR Holdings (QCRH)
Rolling One-Year Beta: 0.74
With roots dating back to 1993 and a name reflecting its original Quad Cities market, QCR Holdings (NASDAQGM:QCRH) operates four community banks across Iowa and Missouri, providing commercial, consumer banking, and trust services to businesses and individuals.
Why Are We Hesitant About QCRH?
- Sales trends were unexciting over the last two years as its 2.7% annual growth was below the typical bank company
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 29 basis points (100 basis points = 1 percentage point)
- High debt servicing costs relative to its earnings leave little margin for error in meeting its financial obligations
QCR Holdings’s stock price of $64.32 implies a valuation ratio of 1x forward P/B. If you’re considering QCRH for your portfolio, see our FREE research report to learn more.
PNC Financial Services Group (PNC)
Rolling One-Year Beta: 0.91
Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE: PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network.
Why Are We Wary of PNC?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Net interest margin of 2.7% is well below other banks, signaling its loans aren’t very profitable
- Annual interest expenses are high relative to its profits, increasing the probability of its failure to meet certain borrowing obligations
At $174.27 per share, PNC Financial Services Group trades at 1.3x forward P/B. Read our free research report to see why you should think twice about including PNC in your portfolio.
One Stock to Buy:
Verra Mobility (VRRM)
Rolling One-Year Beta: 0.16
Aiming to wrap technology and data around a historically manual and paper-based industry, Verra Mobility (NYSE: VRRM) is a leading provider of smart mobility technology to address tolls and violations, title and registration services, as well as safety and traffic enforcement.
Why Will VRRM Beat the Market?
- Annual revenue growth of 13.8% over the last five years was superb and indicates its market share increased during this cycle
- Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 62.1%
- Strong free cash flow margin of 20% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
Verra Mobility is trading at $24.24 per share, or 17.6x 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
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
