In This Article:
Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
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 offer consistent gains and two stuck in limbo.
Two Stocks to Sell:
Kimberly-Clark (KMB)
Rolling One-Year Beta: 0.19
Originally founded as a Wisconsin paper mill in 1872, Kimberly-Clark (NYSE:KMB) is now a household products powerhouse known for personal care and tissue products.
Why Is KMB Not Exciting?
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Flat unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
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Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
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Free cash flow margin has stayed in place over the last year
Kimberly-Clark is trading at $130.11 per share, or 17.3x forward price-to-earnings. Read our free research report to see why you should think twice about including KMB in your portfolio, it’s free.
Revvity (RVTY)
Rolling One-Year Beta: 0.69
Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE:RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.
Why Do We Think RVTY Will Underperform?
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Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
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Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 8.8 percentage points
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Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $92.67 per share, Revvity trades at 18x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than RVTY.
One Stock to Buy:
QuinStreet (QNST)
Rolling One-Year Beta: 0.82
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Is QNST a Good Business?
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Annual revenue growth of 27.1% over the last two years was superb and indicates its market share increased during this cycle
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Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
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Earnings per share have massively outperformed its peers over the last two years, increasing by 99.4% annually