1 Safe-and-Steady Stock Worth Investigating and 2 We Find Risky

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. That said, 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:

Lennar (LEN)

Rolling One-Year Beta: 0.57

One of the largest homebuilders in America, Lennar (NYSE:LEN) is known for constructing affordable, move-up, and retirement homes across a range of markets and communities.

Why Do We Pass on LEN?

1. Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 19.2% declines over the past two years
2. Free cash flow margin shrank by 11.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

At $118.29 per share, Lennar trades at 13.7x forward P/E. Check out our free in-depth research report to learn more about why LEN doesn’t pass our bar.

Bank of Hawaii (BOH)

Rolling One-Year Beta: 0.84

Founded in 1897 as a financial anchor for the newly annexed Hawaiian territory, Bank of Hawaii (NYSE:BOH) is a financial institution providing banking, investment, and insurance services primarily to customers in Hawaii, Guam, and other Pacific Islands.

Why Is BOH Not Exciting?

1. Net interest income stagnated over the last five years and signal the need for new growth strategies
2. Net interest margin of 2.2% reflects its high servicing and capital costs
3. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable

Bank of Hawaii’s stock price of $63.15 implies a valuation ratio of 1.7x forward P/B. To fully understand why you should be careful with BOH, check out our full research report (it’s free for active Edge members).

One Stock to Watch:

Home Bancshares (HOMB)

Rolling One-Year Beta: 0.92

Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares (NYSE:HOMB) operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states.

Why Are We Positive On HOMB?

1. Differentiated product suite is reflected in its Strong performance of its loan book results in a High-yielding loan book and low cost of funds are reflected in its stellar net interest margin of 4.3%
2. Earnings per share have comfortably outperformed the peer group average over the last two years, increasing by 0.5% annually
3. Impressive 8.4% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle

Home Bancshares is trading at $27.25 per share, or 1.3x forward P/B. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out 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

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