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 providing safe-and-steady growth and two stuck in limbo.
Two Stocks to Sell:
UFP Industries (UFPI)
Rolling One-Year Beta: 0.55
Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ:UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.
Why Is UFPI Risky?
- Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Sales were less profitable over the last two years as its earnings per share fell by 20.4% annually, worse than its revenue declines
- Diminishing returns on capital suggest its earlier profit pools are drying up
UFP Industries’s stock price of $108 implies a valuation ratio of 19.4x forward P/E. Check out our free in-depth research report to learn more about why UFPI doesn’t pass our bar.
Intercontinental Exchange (ICE)
Rolling One-Year Beta: 0.55
Starting as an energy trading platform in 2000 before acquiring the iconic New York Stock Exchange in 2013, Intercontinental Exchange (NYSE:ICE) operates global financial exchanges, clearing houses, and provides data services and mortgage technology solutions to financial institutions and corporations.
Why Are We Cautious About ICE?
- Annual earnings per share growth of 9.3% underperformed its revenue over the last five years, showing its incremental sales were less profitable
Intercontinental Exchange is trading at $174.10 per share, or 24.1x forward P/E. To fully understand why you should be careful with ICE, check out our full research report (it’s free).
One Stock to Buy:
Morningstar (MORN)
Rolling One-Year Beta: 0.62
Founded in 1984 by Joe Mansueto with just $80,000 in personal savings, Morningstar (NASDAQ:MORN) provides independent investment data, research, and analysis tools that help investors, advisors, and institutions make informed financial decisions.
Why Will MORN Beat the Market?
- Annual revenue growth of 12.3% over the last five years beat the sector average and underscores the unique value of its offerings
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 131% exceeded its revenue gains over the last two years
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $213.63 per share, Morningstar trades at 20.9x 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.