Low volatility investing focuses on companies whose stock prices tend to move less than the overall market. While traditional finance theory suggests that higher returns come with higher risk, decades of research have shown that low-volatility stocks have often delivered better risk-adjusted returns than their more volatile counterparts. These stocks appeal to investors looking for more stable performance and less dramatic losses during market downturns.
To capture this effect, we screened our database for stocks that rank in the bottom 10% in terms of both price volatility and sensitivity to market movements. From this universe of steady performers, we selected the 10 stocks that scored highest according to the investment models we run on Validea—models inspired by the strategies of legendary investors like Warren Buffett, Peter Lynch, and Benjamin Graham.
Validea’s system evaluates stocks using a wide range of fundamental criteria derived from time-tested investing approaches. Each model looks at factors such as earnings consistency, return on equity, valuation, and financial strength, then assigns a score to every stock based on how closely it aligns with these principles. By combining the discipline of factor-based investing with insights from history’s most successful investors, we aim to highlight stocks with both stability and long-term upside potential.
Here are the top 10 low volatility stocks for May of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Low Volatility Percentile | Standard Deviation | Beta |
|---|---|---|---|---|---|---|---|---|---|---|
| HSBC | HSBC HOLDINGS PLC (ADR) | $59.12 | $205,910 | 10.9 | 2.8 | 82 | 1.1 | 5 | 25.3% | 0.56 |
| MRK | MERCK & CO INC | $77.59 | $194,831 | 11.3 | 3.1 | 29 | 4.0 | 2 | 22.3% | 0.40 |
| CALM | CAL-MAINE FOODS INC | $95.52 | $4,632 | 4.7 | 1.2 | 89 | 2.0 | 10 | 34.5% | 0.16 |
| TTE | TOTALENERGIES SE (ADR) | $58.49 | $133,227 | 9.8 | 0.7 | 42 | 1.1 | 6 | 25.1% | 0.58 |
| NEU | NEWMARKET CORP | $646.38 | $6,098 | 12.9 | 2.2 | 75 | 4.0 | 3 | 23.6% | 0.42 |
| BJ | BJ’S WHOLESALE CLUB HOLDINGS INC | $114.95 | $15,179 | 26.7 | 0.7 | 81 | 7.7 | 4 | 28.1% | 0.48 |
| TMUS | T-MOBILE US INC | $243.36 | $276,322 | 23.7 | 3.3 | 86 | 4.5 | 2 | 22.2% | 0.63 |
| FDP | FRESH DEL MONTE PRODUCE INC | $34.69 | $1,663 | 11.0 | 0.4 | 87 | 0.8 | 5 | 28.0% | 0.39 |
| UVV | UNIVERSAL CORP | $59.78 | $1,478 | 11.9 | 0.5 | 81 | 1.0 | 9 | 25.5% | 0.74 |
| IGIC | INTERNATIONAL GENERAL INSURANC HLDGS LTD | $23.04 | $1,044 | 8.4 | 1.9 | 90 | 1.6 | 9 | 32.8% | 0.25 |
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