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.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here are two low-volatility stocks providing safe-and-steady growth and one that may not deliver the returns you need.
One Stock to Sell:
Strategic Education (STRA)
Rolling One-Year Beta: 0.52
Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ: STRA) is a career-focused higher education provider.
Why Is STRA Risky?
- Performance surrounding its domestic students has lagged its peers
- Earnings per share fell by 5.2% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Free cash flow margin is expected to remain in place over the coming year
At $80.73 per share, Strategic Education trades at 12.9x forward P/E. To fully understand why you should be careful with STRA, check out our full research report (it’s free for active Edge members).
Two Stocks to Watch:
Incyte (INCY)
Rolling One-Year Beta: 0.35
Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ: INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.
Why Are We Positive On INCY?
- 15.5% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Share repurchases over the last five years enabled its annual earnings per share growth of 60.8% to outpace its revenue gains
- Free cash flow margin jumped by 6.9 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Incyte’s stock price of $100.27 implies a valuation ratio of 13.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Mastercard (MA)
Rolling One-Year Beta: 0.91
Recognizable by its iconic "Priceless" advertising campaign that has run in over 120 countries, Mastercard (NYSE: MA) operates a global payments network that connects consumers, financial institutions, merchants, and businesses, enabling electronic transactions and providing payment solutions.
Why Will MA Beat the Market?
- Impressive 15.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Performance over the past five years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 164% return on equity demonstrates management’s skill in finding high-return investments
Mastercard is trading at $579.07 per share, or 31.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 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 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 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.
