Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here is one low-volatility stock that could succeed under all market conditions and two stuck in limbo.
Two Stocks to Sell:
Horace Mann Educators (HMN)
Rolling One-Year Beta: 0.04
Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE:HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.
Why Do We Steer Clear of HMN?
- Growth in insurance policies was lackluster over the last five years as its 6.4% annual growth underperformed the typical financial institution
- Book value per share tumbled by 3.3% annually over the last five years, showing insurance sector trends are working against it during this cycle
- Low return on equity reflects management’s struggle to allocate funds effectively
At $45.47 per share, Horace Mann Educators trades at 1.2x forward P/B. Read our free research report to see why you should think twice about including HMN in your portfolio.
Enact Holdings (ACT)
Rolling One-Year Beta: 0.11
Playing a critical role in helping first-time homebuyers access the housing market, Enact Holdings (NASDAQ:ACT) provides private mortgage insurance that enables lenders to offer home loans with lower down payments while protecting against borrower defaults.
Why Are We Bearish on ACT?
- Insurance offerings faced market headwinds this cycle, reflected in stagnant net premiums earned over the last five years
- Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
- Earnings per share lagged its peers over the last two years as they only grew by 5.8% annually
Enact Holdings is trading at $45.97 per share, or 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than ACT.
One Stock to Watch:
Pinnacle Financial Partners (PNFP)
Rolling One-Year Beta: 0.76
Founded in 2000 with a focus on delivering big-bank capabilities with community bank personalization, Pinnacle Financial Partners (NASDAQ:PNFP) is a Tennessee-based financial holding company that provides banking, investment, trust, mortgage, and insurance services to businesses and individuals.
Why Are We Positive on PNFP?
- Impressive 21.7% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Exciting net interest income outlook for the upcoming 12 months calls for 50.7% growth, an acceleration from its five-year trend
- Net interest margin increased by 29.5 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
Pinnacle Financial Partners’s stock price of $94 implies a valuation ratio of 1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.