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:

Danaher (DHR)

Rolling one-year beta: 0.41

Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE: DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.

Why Does DHR Worry Us?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
3. Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 2.5% annually

Danaher’s stock price of $233.51 implies a valuation ratio of 25.3x forward P/E. Dive into our free research report to see why there are better opportunities than DHR.

Pelagos Insurance (PLGO)

Rolling one-year beta: -0.04

Founded in Bermuda in 2014 and designed to adapt nimbly to evolving market conditions, Pelagos Insurance (NYSE: PLGO) is a global specialty insurance and reinsurance company focused on creating value through strategic capital allocation, expert risk selection and a network of long-term underwriting partnerships.

Why Are We Wary of PLGO?

1. 7.1% annualized net premiums earned growth over the last two years lagged behind its insurance peers
2. Annual earnings per share growth of 6.2% underperformed its revenue over the last two years, showing its incremental sales were less profitable
3. 10.9% annual book value per share growth over the last two years was slower than its insurance peers

At $26 per share, Pelagos Insurance trades at 0.9x forward P/B. Check out our free in-depth research report to learn more about why PLGO doesn’t pass our bar.

One stock to watch:

Elevance Health (ELV)

Rolling one-year beta: 0.72

Formerly known as Anthem until its 2022 rebranding, Elevance Health (NYSE: ELV) is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.

Why Could ELV Be a Winner?

1. 8.5% annual revenue growth over the last five years was better than the sector average, highlighting the value of its products and services
2. Unparalleled scale of $199.1 billion in revenue enables it to spread administrative costs across a larger membership base
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

Elevance Health is trading at $422.18 per share, or 15.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-quality stocks for all market conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

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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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.