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2 Safe-and-Steady Stocks with Competitive Advantages and 1 We Turn Down

LOPE Cover Image

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.

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 offer consistent gains and one that may not keep up.

One Stock to Sell:

Grand Canyon Education (LOPE)

Rolling One-Year Beta: 0.72

Founded in 1949, Grand Canyon Education (NASDAQ: LOPE) is an educational services provider known for its operation at Grand Canyon University.

Why Should You Dump LOPE?

  1. Sluggish trends in its students suggest customers aren’t adopting its solutions as quickly as the company hoped
  2. Earnings per share lagged its peers over the last five years as they only grew by 7.4% annually
  3. Free cash flow margin is expected to increase by 1.1 percentage points next year, suggesting the company will have more capital to invest or return to shareholders

Grand Canyon Education is trading at $170.95 per share, or 17.9x forward P/E. Dive into our free research report to see why there are better opportunities than LOPE.

Two Stocks to Watch:

Zoetis (ZTS)

Rolling One-Year Beta: 0.62

Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE: ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.

Why Does ZTS Stand Out?

  1. Share repurchases over the last five years enabled its annual earnings per share growth of 10.5% to outpace its revenue gains
  2. Strong free cash flow margin of 21.4% enables it to reinvest or return capital consistently
  3. Industry-leading 29.2% return on capital demonstrates management’s skill in finding high-return investments

At $129.05 per share, Zoetis trades at 19.6x 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.

NMI Holdings (NMIH)

Rolling One-Year Beta: 0.69

Founded in the aftermath of the 2008 housing crisis to bring new capacity to the mortgage insurance market, NMI Holdings (NASDAQ: NMIH) provides mortgage insurance that protects lenders against losses when homebuyers default on their mortgage loans.

Why Is NMIH a Top Pick?

  1. 9.2% annualized net premiums earned expansion over the last two years exceeded the sector average as its policies appealed to customers
  2. Combined ratio improved by 18.5 percentage points over the last five years as it scaled
  3. Annual book value per share growth of 16.2% over the past five years was outstanding, reflecting strong capital accumulation this cycle

NMI Holdings’s stock price of $40.38 implies a valuation ratio of 1.2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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