1 Safe-and-Steady Stock with Exciting Potential and 2 That Underwhelm

Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could offer consistent gains and two that may not keep up.

Two Stocks to Sell:

Reynolds (REYN)

Rolling One-Year Beta: 0.21

Best known for its aluminum foil, Reynolds REYN is a household products company whose products focus on food storage, cooking, and waste.

Why Do We Avoid REYN?

• Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
• Sales are projected to be flat over the next 12 months and imply weak demand
• Capital intensity has ramped up over the last year as its free cash flow margin decreased by 5.8 percentage points

At $22.93 per share, Reynolds trades at 14.2x forward P/E. Read our free research report to see why you should think twice about including REYN in your portfolio.

Procter & Gamble (PG)

Rolling One-Year Beta: 0.23

Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble PG is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.

Why Does PG Fall Short?

• Flat unit sales over the past two years suggest it might have to lower prices to stimulate growth
• Anticipated sales growth of 2.9% for the next year implies demand will be shaky
• Free cash flow margin dropped by 3 percentage points over the last year, implying the company became more capital intensive as competition picked up

Procter & Gamble is trading at $152.25 per share, or 21.7x forward P/E. If you’re considering PG for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Palomar Holdings (PLMR)

Rolling One-Year Beta: 0.48

Founded in 2013 to fill gaps in catastrophe insurance markets, Palomar Holdings PLMR is a specialty insurance provider that offers property and casualty insurance products in underserved markets, with a focus on earthquake coverage.

Why Is PLMR a Good Business?

• Strong 38.3% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
• Balance sheet strength has increased this cycle as its 37.7% annual book value per share growth over the last two years was exceptional
• Notable projected book value per share growth of 24.9% for the next 12 months hints at strong capital generation

Palomar Holdings’s stock price of $114.40 implies a valuation ratio of 3.3x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out 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 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).

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.