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 that may not deliver the returns you need.
One Stock to Sell:
Zimmer Biomet (ZBH)
Rolling One-Year Beta: 0.33
With a history dating back to 1927 and a presence in over 100 countries worldwide, Zimmer Biomet (NYSE: ZBH) designs and manufactures orthopedic products including knee and hip replacements, surgical tools, and robotic technologies for joint reconstruction and spine surgeries.
Why Is ZBH Not Exciting?
- Muted 2.6% annual revenue growth over the last five years shows its demand lagged behind its healthcare peers
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $99.06 per share, Zimmer Biomet trades at 11.9x forward P/E. Read our free research report to see why you should think twice about including ZBH in your portfolio.
Two Stocks to Buy:
MercadoLibre (MELI)
Rolling One-Year Beta: 0.84
Originally started as an online auction platform, MercadoLibre (NASDAQ: MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
Why Do We Love MELI?
- Has the opportunity to boost monetization through new features and premium offerings as its unique active buyers have grown by 20.7% annually over the last two years
- Switching costs of its platform were on full display over the last two years as it not only grew engagement but also increased the average revenue per user by 15.5% annually
- Strong free cash flow margin of 31.1% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
MercadoLibre’s stock price of $2,187 implies a valuation ratio of 22.4x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Tradeweb Markets (TW)
Rolling One-Year Beta: 0.48
Founded in 1996 as one of the pioneers in electronic bond trading, Tradeweb Markets (NASDAQ: TW) builds and operates electronic marketplaces that connect financial institutions for trading across rates, credit, equities, and money markets.
Why Is TW a Top Pick?
- Impressive 25.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Additional sales over the last two years increased its profitability as the 27.5% annual growth in its earnings per share outpaced its revenue
Tradeweb Markets is trading at $104.60 per share, or 28.9x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 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 Exlservice (+354% 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
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