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2 Reliable Stocks with Strong Fundamentals and 1 Encountering Challenges

2 Reliable Stocks with Strong Fundamentals and 1 Encountering Challenges

101 finance101 finance2026/01/06 10:57
By:101 finance

Exploring Low-Volatility Stocks: Stability Versus Growth

Investing in stocks with low volatility can provide a sense of security, but this often means sacrificing the rapid growth and higher returns that more aggressive stocks might offer.

Making poor investment choices can set you back financially, which is why StockStory was created—to help investors distinguish between potential winners and underperformers. Below, we highlight two low-volatility stocks that could perform well in any market environment, as well as one that may not meet your return expectations.

Stock to Consider Selling

CVB Financial (CVBF)

One-Year Beta: 0.80

CVB Financial (NASDAQ:CVBF), established in 1974, operates Citizens Business Bank and primarily serves small and mid-sized businesses throughout California, offering a range of banking, lending, and trust services to both companies and individuals.

Reasons CVBF May Lag Behind:

  • Over the past two years, annual revenue has dropped by 4.5%, indicating that its offerings have struggled to gain traction in the current market.
  • Net interest income has grown at a modest 1.4% annually over the last five years, trailing behind the average growth seen in the banking sector.
  • Earnings per share increased by just 2.4% annually over the last five years, falling short of sector averages.

Currently, CVB Financial trades at $19.20 per share, with a forward price-to-book ratio of 1.1.

Two Low-Volatility Stocks Worth Watching

Brady (BRC)

One-Year Beta: 0.59

Brady (NYSE:BRC), founded in 1914, has a long history of industrial innovation. The company specializes in identification solutions and workplace safety products, helping businesses safeguard their people, products, and facilities.

Why Brady Stands Out:

  • Brady has achieved a robust 7.5% annual revenue growth over the past five years, demonstrating its ability to address complex business needs.
  • Share buybacks have fueled an impressive 15.7% annual growth in earnings per share, outpacing revenue growth.
  • The company maintains a strong free cash flow margin of 11%, providing flexibility for reinvestment or capital returns.

Brady shares are priced at $80.85, reflecting a forward P/E ratio of 15.3.

Cintas (CTAS)

One-Year Beta: 0.65

Cintas (NASDAQ:CTAS) began as a family-run business in Cincinnati, collecting and laundering shop rags. Today, it supplies uniforms, facility services, and safety products to over a million businesses across North America.

What Makes Cintas a Strong Contender:

  • Cintas has posted an impressive 9.3% annual revenue growth over the last five years, reflecting its ability to capture market share.
  • Share repurchases have driven annual earnings per share growth of 15.6%, surpassing revenue growth rates.
  • The company generates substantial free cash flow, allowing for ongoing investment in growth or returning capital to shareholders.

At $185.40 per share, Cintas trades at a forward P/E of 35.9.

Discover Even More Promising Stocks

Relying on just a handful of stocks can leave your portfolio vulnerable. Now is the time to secure high-quality investments before the market shifts and opportunities diminish.

Don’t wait for the next bout of market turbulence. Explore our Top 9 Market-Beating Stocks—a handpicked collection of high-quality companies that have delivered a remarkable 244% return over the past five years (as of June 30, 2025).

Our 2020 selections included standout performers like Nvidia, which soared 1,326% from June 2020 to June 2025, as well as lesser-known names such as Exlservice, which achieved a 354% five-year return. Start your search for the next big winner with StockStory—free access available now.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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