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 are two low-volatility stocks that could succeed under all market conditions and one stuck in limbo.

One Stock to Sell:

Kellanova (K)

Rolling One-Year Beta: 0.02

With Corn Flakes as its first and most iconic product, Kellanova (NYSE:K) is a packaged foods company that is dominant in the cereal and snack categories.

Why Are We Hesitant About K?

1. Falling unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
2. Sales are projected to be flat over the next 12 months and imply weak demand
3. Earnings per share have dipped by 2.5% annually over the past three years, which is concerning because stock prices follow EPS over the long term

At $82.69 per share, Kellanova trades at 21.1x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than K.

Two Stocks to Watch:

AutoZone (AZO)

Rolling One-Year Beta: 0.26

Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.

Why Does AZO Catch Our Eye?

1. Same-store sales growth lends it the confidence to gradually expand its store base so it can reach more customers
2. Differentiated product assortment is reflected in its best-in-class gross margin of 53%
3. Strong free cash flow margin of 11.1% enables it to reinvest or return capital consistently

AutoZone is trading at $3,655 per share, or 22.5x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.

Amphastar Pharmaceuticals (AMPH)

Rolling One-Year Beta: 0.69

Founded in 1996 and known for its expertise in complex drug formulations, Amphastar Pharmaceuticals (NASDAQ:AMPH) develops and manufactures technically challenging injectable and inhalation medications, including both generic and proprietary pharmaceutical products.

Why Does AMPH Stand Out?

1. Market share has increased this cycle as its 21.1% annual revenue growth over the last two years was exceptional
2. Free cash flow margin jumped by 16.9 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
3. Improving returns on capital reflect management’s ability to monetize investments

Amphastar Pharmaceuticals’s stock price of $23.33 implies a valuation ratio of 6.3x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.