1 Safe-and-Steady Stock to Research Further and 2 Facing Challenges

Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.

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 offer consistent gains and two that may not keep up.

Two Stocks to Sell:

RTX (RTX)

Rolling One-Year Beta: 0.83

Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.

Why Are We Wary of RTX?

1. Estimated sales growth of 5% for the next 12 months implies demand will slow from its two-year trend
2. Subpar operating margin of 7.5% constrains its ability to invest in process improvements or effectively respond to new competitive threats
3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $169.30 per share, RTX trades at 26.2x forward P/E. If you’re considering RTX for your portfolio, see our FREE research report to learn more.

Employers Holdings (EIG)

Rolling One-Year Beta: 0.63

With roots in Nevada and a strong concentration in California where 45% of its premiums are generated, Employers Holdings (NYSE:EIG) is a specialty provider of workers' compensation insurance focused on small and select businesses engaged in low-to-medium hazard industries across the United States.

Why Should You Sell EIG?

1. Growth in insurance policies was lackluster over the last two years as its 3.3% annual growth underperformed the typical financial institution
2. Operational productivity has decreased over the last two years as its combined ratio worsened by 10.9 percentage points
3. Incremental sales over the last five years were much less profitable as its earnings per share fell by 8.3% annually while its revenue grew

Employers Holdings is trading at $39.89 per share, or 0.8x forward P/B. To fully understand why you should be careful with EIG, check out our full research report (it’s free for active Edge members).

One Stock to Watch:

RLI (RLI)

Rolling One-Year Beta: 0.26

Founded in 1965 and named after its original focus on "replacement lens insurance" for contact lens wearers, RLI (NYSE:RLI) is a specialty insurance company that underwrites property, casualty, and surety products through wholesale brokers, independent agents, and carrier partnerships.

Why Should RLI Be on Your Watchlist?

1. Annual revenue growth of 14.5% over the last five years was superb and indicates its market share increased during this cycle
2. Net premiums earned surged by 13.3% annually over the past two years, reflecting strong market share gains this cycle
3. Industry-leading 28.4% return on equity demonstrates management’s skill in finding high-return investments

RLI’s stock price of $62.08 implies a valuation ratio of 3.1x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

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 9 Market-Beating Stocks. 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.