Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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:
Globe Life (GL)
Rolling One-Year Beta: 0.57
With roots dating back to 1900 and a rebranding from Torchmark Corporation in 2019, Globe Life (NYSE:GL) is an insurance holding company that offers life insurance, supplemental health insurance, and annuity products through various distribution channels.
Why Are We Cautious About GL?
- 4.3% annual net premiums earned growth over the last two years was slower than its insurance peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 18.7% annually
- Muted 1.3% annual book value per share growth over the last five years shows its capital generation lagged behind its insurance peers
Globe Life’s stock price of $121.20 implies a valuation ratio of 1.7x forward P/B. Check out our free in-depth research report to learn more about why GL doesn’t pass our bar.
Reinsurance Group of America (RGA)
Rolling One-Year Beta: 0.78
Operating behind the scenes of the insurance industry since 1973, Reinsurance Group of America (NYSE:RGA) provides life and health reinsurance services to insurance companies, helping them manage risk and meet regulatory requirements.
Why Are We Hesitant About RGA?
- Performance over the past two years shows its incremental sales were less profitable, as its 7.9% annual earnings per share growth trailed its revenue gains
- Large asset base makes it harder to grow book value per share quickly, and its annual book value per share growth of 2.7% over the last five years was below our standards for the insurance sector
- Low return on equity reflects management’s struggle to allocate funds effectively
At $197.79 per share, Reinsurance Group of America trades at 1.1x forward P/B. If you’re considering RGA for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
TransDigm (TDG)
Rolling One-Year Beta: 0.93
Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE:TDG) develops and manufactures components and systems for military and commercial aviation.
Why Are We Bullish on TDG?
- Core business can prosper without any help from acquisitions as its organic revenue growth averaged 14.8% over the past two years
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 30.8% outpaced its revenue gains
- TDG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety
TransDigm is trading at $1,523 per share, or 37.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today