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. That said, here are two low-volatility stocks that could succeed under all market conditions and one stuck in limbo.
One stock to sell:
City Holding (CHCO)
Rolling one-year beta: -0.05
With roots dating back to 1957 and a strategic presence along the I-64 and I-81 corridors, City Holding (NASDAQGS:CHCO) operates as a financial holding company providing banking, trust, and investment services through its subsidiary City National Bank across West Virginia, Kentucky, Virginia, and Ohio.
Why Does CHCO Fall Short?
- Net interest income trends were unexciting over the last five years as its 9.7% annual growth was below the typical banking firm
- Estimated net interest income growth of 4% for the next 12 months implies demand will slow from its five-year trend
- Capital trends were unexciting over the last two years as its 6% annual tangible book value per share growth was below the typical banking firm
At $145.49 per share, City Holding trades at 2.5x forward P/B. Dive into our free research report to see why there are better opportunities than CHCO.
Two stocks to watch:
O'Reilly (ORLY)
Rolling one-year beta: 0.03
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
Why Is ORLY a Good Business?
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 5.6% growth over the past two years
- Excellent operating margin of 19.5% highlights the efficiency of its business model
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
O'Reilly is trading at $91.30 per share, or 24.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
WD-40 (WDFC)
Rolling one-year beta: 0.33
Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ:WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.
Why Is WDFC on Our Radar?
- Differentiated product offerings are difficult to replicate at scale and result in a premier gross margin of 55.2%
- WDFC is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its rising returns show it’s making even more lucrative bets
WD-40’s stock price of $227.54 implies a valuation ratio of 33.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-quality stocks for all market conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.