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.
Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here are two low-volatility stocks that could succeed under all market conditions and one that may not deliver the returns you need.
One Stock to Sell:
Main Street Capital (MAIN)
Rolling One-Year Beta: 0.83
With a focus on building long-term partnerships rather than quick transactions, Main Street Capital (NYSE:MAIN) is a business development company that provides long-term debt and equity capital to lower middle market and middle market companies.
Why Does MAIN Fall Short?
- Incremental sales over the last two years were less profitable as its earnings per share were flat while its revenue grew
- Annual tangible book value per share growth of 7.5% over the last two years was below our standards for the financials sector
Main Street Capital’s stock price of $61.82 implies a valuation ratio of 15.6x forward P/E. If you’re considering MAIN for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Verra Mobility (VRRM)
Rolling One-Year Beta: -0.01
Aiming to wrap technology and data around a historically manual and paper-based industry, Verra Mobility (NYSE:VRRM) is a leading provider of smart mobility technology to address tolls and violations, title and registration services, as well as safety and traffic enforcement.
Why Could VRRM Be a Winner?
- Annual revenue growth of 18.4% over the last five years was superb and indicates its market share increased during this cycle
- Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 61.8%
- Earnings per share grew by 20.4% annually over the last five years and trumped its peers
At $18.79 per share, Verra Mobility trades at 13.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Houlihan Lokey (HLI)
Rolling One-Year Beta: 0.91
Founded in 1972 and known for its expertise in complex financial situations, Houlihan Lokey (NYSE:HLI) is a global investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory services.
Why Will HLI Beat the Market?
- Annual revenue growth of 20% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 34.9% outpaced its revenue gains
- Impressive 34.3% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle
Houlihan Lokey is trading at $167.61 per share, or 19.5x 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
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 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
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