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. That said, here are two low-volatility stocks providing safe-and-steady growth and one stuck in limbo.
One Stock to Sell:
Oaktree Specialty Lending (OCSL)
Rolling One-Year Beta: 0.55
Managed by Oaktree Capital Management, one of the world's premier alternative investment firms, Oaktree Specialty Lending (NASDAQ:OCSL) is a business development company that provides customized financing solutions to mid-market companies across various industries.
Why Should You Dump OCSL?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 12.4% annually over the last two years
- Sales were less profitable over the last two years as its earnings per share fell by 18.1% annually, worse than its revenue declines
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 4.5% annually over the last five years
Oaktree Specialty Lending’s stock price of $12.36 implies a valuation ratio of 8.4x forward P/E. To fully understand why you should be careful with OCSL, check out our full research report (it’s free).
Two Stocks to Watch:
Lennox (LII)
Rolling One-Year Beta: 0.83
Based in Texas and founded over a century ago, Lennox (NYSE:LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.
Why Does LII Stand Out?
- Operating margin improvement of 5.2 percentage points over the last five years demonstrates its ability to scale efficiently
- Share repurchases over the last five years enabled its annual earnings per share growth of 17.9% to outpace its revenue gains
- ROIC punches in at 48.7%, illustrating management’s expertise in identifying profitable investments
At $557.57 per share, Lennox trades at 22.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Mueller Water Products (MWA)
Rolling One-Year Beta: 0.92
As one of the oldest companies in the water infrastructure industry, Mueller (NYSE:MWA) is a provider of water infrastructure products and flow control systems for various sectors.
Why Will MWA Outperform?
- Average organic revenue growth of 9.2% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 45.2% over the last two years outstripped its revenue performance
Mueller Water Products is trading at $29.01 per share, or 20.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 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.
/Pfizer%20Inc_%20logo%20sign-by%20JHVEPhoto%20via%20iStock.jpg)
/Netflix%20on%20tv%20with%20remote%20by%20freestocks%20via%20Unsplash.jpg)
