7 Low-Volatility Stocks for Stable Growth in 2024

At first glance, targeting low-volatility stocks to buy for stable growth might seem too cautious. Yet, in the investment world, keeping tabs on volatility is imperative and a key indicator of risk. During market downturns, volatile stocks often experience significant price swings. In contrast, sectors including healthcare, consumer staples, telecommunications, and utilities typically show lower volatility, offering a relatively safer haven in recessionary periods. Despite current market momentum, the waning strength of the global economy hints at inevitable moderation in growth. While optimism is valued in society, on Wall Street, a pragmatic approach is crucial. Given the interconnected nature of the global economy, investors must remain aware of broader trends. With that said, I’ve highlighted seven savvy picks for stable, low-volatility stocks, each with a Beta value of under one. This metric gauges volatility compared to the market, making these stocks steadier bets in turbulent times.

Stocks to Buy for Stable Growth: CD Projekt S.A. ADR (OTGLY)

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• Beta: 0.94
• 3-Year Cyclically Adjusted Revenue Growth Rate: 34.6%

CD Projekt S.A. ADR (OTCMKTS:OTGLY) is a company known in the gaming industry for its innovative spirit. Following its initial launch amidst a whirlwind of anticipation, Cyberpunk 2077 has now evolved into a game that has lived up to the high expectations set by its early buzz. The game’s eventual triumph, with sales surpassing 25 million copies, exemplifies the company’s resilience and capacity for long-term growth in the competitive gaming niche.

These achievements underscore the company’s evolution, learning from past experiences to build upon future projects. The success of Cyberpunk, alongside the legendary Witcher series, has diversified the studio’s revenue streams, reducing its reliance on a single franchise. Furthermore, with its appealing slate of new installments of its successful lineup of games, CD Projekt RED is set to broaden its footprint in the gaming industry significantly.

Palo Alto (PANW)

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• Beta: 0.87
• 3-Year Cyclically Adjusted Revenue Growth Rate: 26%

Palo Alto (NASDAQ:PANW) demonstrates a robust position in the cybersecurity landscape, underscored by its varied services which include advanced firewalls and specialized solutions including threat detection and DNS security. The company’s financial performance remains solid, evident in its latest quarter report for fiscal 2024, showcasing a 20% increase in sales. This growth is attributed to various segments, including a 3% increase in product revenue, 25% in total service revenue, and a 29% bump in subscription revenue.

These figures reflect Palo Alto’s diversified revenue streams, contributing impressively to its overall growth. Amid the challenges of rising costs, Palo Alto is focusing on flexible billing options and engaging with multiple partners to align billing trends with revenue projections and market demand efficiently. Furthermore, Palo Alto is enhancing its network security and embracing new technologies including AI, UI improvements, and Zero Trust architecture, affirming its commitment to staying ahead in the dynamic cybersecurity sphere.

Stocks to Buy for Stable Growth: Nutrien (NTR)

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• Beta: 0.84
• 3-Year Cyclically Adjusted Revenue Growth Rate: 16.70%

Nutrien (NYSE:NTR) is a Canadian giant in the fertilizer sector, holding the title of the world’s largest potash producer and the third largest in nitrogen fertilizer. With it boasting a massive network of more than 2,000 retail locations spanning North America, South America, and Australia, Nutrien demonstrates its dual prowess in manufacturing and agricultural technology. The company’s strategic growth plans involve ramping up potash production to 18 million tons by 2025, addressing global supply shortages and rising demand.

Nutrien is also championing sustainability, embarking on building the world’s largest clean ammonia facility in Louisiana, reflecting its commitment to eco-friendly practices. Financially robust, Nutrien recorded an impressive $1.1 billion adjusted EBITDA in its most recent quarterly showing, reaching a total of $5 billion over nine months. Its revenue peaked at $5.37 billion, coupled with a forward yield of 3.5%, showcasing the firm’s sustained profitability and promising outlook in its niche.

Visa (V)

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• Beta: 0.94
• 3-Year Cyclically Adjusted Revenue Growth Rate: 16.50%

Visa (NYSE:V), a titan in payment processing, continues to impress with its solid financial performance. The company reported an 11% increase in total revenue and a 19% hike in net income in the fourth quarter. Moreover, their processed transactions also saw a 10% growth. Holding a formidable position alongside Mastercard (NYSE:MA) in the payment sector, Visa boasts profit margins exceeding the 50% mark. This financial resilience is highlighted by consistent positive cash flow, even during the most testing of economic challenges.

Visa’s approach to managing excess liquidity is strategic, with a five-year free cash flow growth of more than 13.5%, funneling billions back to shareholders via buybacks and dividends. The recent uptick in international travel has further fueled Visa’s success, with a notable bump in cross-border transaction volumes and fees. Looking forward, the expected surge in holiday spending is likely to bolster Visa’s performance even more, cementing its status as a giant in the financial services sector.

Stocks to Buy for Stable Growth: Nintendo (NTDOY, NTDOF)

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• Beta: 0.51
• 3-Year Cyclically Adjusted Revenue Growth Rate: 12%

Nintendo (OTCMKTS:NTDOY, OTCMKTS:NTDOF) is shaping up to be a leading gaming stock in 2024, bolstered by robust financial triumphs of late. After a powerful fiscal second quarter, the company has raised its full-year forecast, anticipating 1.58 trillion yen in net sales, up significantly from 1.45 trillion yen. Its net profit is expected to climb to a whopping 420 billion yen.

This financial surge is propelled by successes including The Super Mario Bros. Movie and the growing popularity of Zelda games. Nintendo Switch software projections are up to 185 million units, thanks to growing sales of The Legend of Zelda: Tears of the Kingdom. Digital sales increased by a hefty 15.8%, driven by favorable currency factors and enhanced content. Furthermore, with the holiday season ahead, and the potential of its vast intellectual property, Nintendo’s financials and innovative ventures signal a promising 2024.

Travelers Companies (TRV)

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• Beta: 0.55
• 3-Year Cyclically Adjusted Revenue Growth Rate: 11.7%

Travelers Companies (NYSE:TRV), with its iconic red umbrella emblem, is a reputable player in the insurance sector, offering a variety of solutions from property and casualty to auto, home, and business insurance. With a remarkable 165-year history, TRV has delivered a 53.7% price return over three years, consistently raising dividends for 17 consecutive years. Despite 2023’s challenges, including inflation and catastrophe losses, Travelers’ strategic premium signals potential for future earnings growth.

As a leader in diversified property and casualty insurance, the firm’s effective premium renewal approaches, combined with a substantial share repurchase program and a notable dividend track record, reflect its financial ability. Travelers has been growing its top-line growth at more than 10.5% year-over-year, while its levered FCF margins stand at 32.5%, making it an attractive investment option despite the weaknesses in its business environment.

Novo Nordisk (NVO)

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• Beta: 0.60
• 3-Year Cyclically Adjusted Revenue Growth Rate: 13.1%

Novo Nordisk (NYSE:NVO) is one of the leading pharmaceutical businesses globally, boasting an A-graded profitability profile. Its stock is up by more than 40% this year, and its momentum is in line with its glowing historical performance. On top of that, it yields a decent 1%, with four consecutive years of dividend growth.

Particularly in the pharmaceutical weight-loss realm, the company made some major strides. The company secured FDA approval for Wegovy, a weight loss drug, ahead of its competition, and despite early production issues, strong demand for Wegovy keeps Novo Nordisk in the spotlight. The company’s recent financial results show a remarkable 46% sales increase in North America, with its obesity and weight loss segment growing by a heartening 36%. Furthermore, according to investment bank Goldman Sachs’ research projects, the anti-obesity drug market could grow to a whopping $100 billion by 2030, positioning Novo Nordisk as a key player in this burgeoning field.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.