1 Safe-and-Steady Stock with Competitive Advantages and 2 Facing Headwinds

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.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. 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:

Neogen (NEOG)

Rolling One-Year Beta: 0.92

Founded in 1981 and operating at the intersection of food safety and animal health, Neogen (NASDAQ:NEOG) develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.

Why Should You Dump NEOG?

1. Sales tumbled by 1.8% annually over the last two years, showing market trends are working against its favor during this cycle
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. EBITDA losses may force it to accept punitive lending terms or high-cost debt

Neogen’s stock price of $6 implies a valuation ratio of 18.5x forward P/E. Read our free research report to see why you should think twice about including NEOG in your portfolio.

Commerce Bancshares (CBSH)

Rolling One-Year Beta: 0.74

Founded in 1865 during the post-Civil War economic boom, Commerce Bancshares (NASDAQGS:CBSH) is a Midwest-focused bank holding company that provides retail, commercial, and wealth management services to individuals and businesses.

Why Does CBSH Fall Short?

1. Sales trends were unexciting over the last two years as its 4.7% annual growth was below the typical banking company
2. 5.9% annual net interest income growth over the last five years was slower than its banking peers
3. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 7.9% annually

At $53.70 per share, Commerce Bancshares trades at 1.8x forward P/B. If you’re considering CBSH for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

ResMed (RMD)

Rolling One-Year Beta: 0.82

Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE:RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.

Why Are We Positive On RMD?

1. Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 9.4% over the past two years
2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 14.2% annually, topping its revenue gains
3. Free cash flow margin jumped by 21.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

ResMed is trading at $248 per share, or 22.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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-micro-cap company Tecnoglass (+1,754% 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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