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.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here is one low-volatility stock providing safe-and-steady growth and two that may not deliver the returns you need.
Two Stocks to Sell:
Mondelez (MDLZ)
Rolling One-Year Beta: -0.11
Founded as Nabisco in 1903, Mondelez (NASDAQ:MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.
Why Are We Cautious About MDLZ?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Estimated sales growth of 2.6% for the next 12 months implies demand will slow from its three-year trend
- Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 3% annually
At $60.55 per share, Mondelez trades at 18.8x forward P/E. Dive into our free research report to see why there are better opportunities than MDLZ.
Cathay General Bancorp (CATY)
Rolling One-Year Beta: 0.34
Founded in 1962 with its first branch in Los Angeles' Chinatown, Cathay General Bancorp (NASDAQ:CATY) operates Cathay Bank, providing commercial banking services to businesses and individuals with a strong presence in Asian-American communities.
Why Are We Hesitant About CATY?
- Muted 6.6% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 7.5% annually
- Capital generation will likely be soft over the next 12 months as Wall Street’s estimates imply tepid tangible book value per share growth of 9.6%
Cathay General Bancorp is trading at $59.12 per share, or 1.3x forward P/B. If you’re considering CATY for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Nasdaq (NDAQ)
Rolling One-Year Beta: 0.70
Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ:NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.
Why Is NDAQ Interesting?
- 13.8% annual revenue growth over the last two years surpassed the sector average as its products resonated with customers
- Share buybacks propelled its annual earnings per share growth to 18.6%, which outperformed its revenue gains over the last two years
- Industry-leading 15.4% return on equity demonstrates management’s skill in finding high-return investments
Nasdaq’s stock price of $93.49 implies a valuation ratio of 21.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.