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. Keeping that in mind, here is one low-volatility stock that could offer consistent gains and two stuck in limbo.
Two Stocks to Sell:
Packaging Corporation of America (PKG)
Rolling One-Year Beta: 0.78
Founded in 1959, Packaging Corporation of America (NYSE: PKG) produces containerboard and corrugated packaging products as well as displays and package protection.
Why Does PKG Worry Us?
- Underwhelming unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 3.7 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
Packaging Corporation of America is trading at $218.86 per share, or 20.1x forward P/E. To fully understand why you should be careful with PKG, check out our full research report (it’s free).
MarketAxess (MKTX)
Rolling One-Year Beta: -0.13
Pioneering the shift from phone-based to electronic bond trading since 2000, MarketAxess (NASDAQ:MKTX) operates electronic trading platforms that enable institutional investors and broker-dealers to efficiently trade fixed-income securities like corporate and government bonds.
Why Does MKTX Fall Short?
- Annual revenue growth of 5.3% over the last five years was below our standards for the financials sector
- Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
At $168.21 per share, MarketAxess trades at 21.8x forward P/E. Read our free research report to see why you should think twice about including MKTX in your portfolio.
One Stock to Buy:
Chipotle (CMG)
Rolling One-Year Beta: 0.88
Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE:CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.
Why Will CMG Beat the Market?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Average same-store sales growth of 4.2% over the past two years indicates its restaurants are resonating with diners
- Unparalleled revenue scale of $11.79 billion gives it advantageous pricing and terms with suppliers
Chipotle’s stock price of $39.74 implies a valuation ratio of 34x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.