Stable Stocks: Clean Harbors and Caterpillar Stand Out Amid Market Volatility

When searching for stable stocks, investors often consider low-volatility companies that offer stability but can come at the cost of slower growth and lower upside potential.

StockStory recommends two low-volatility stocks, Clean Harbors (CLH) and Caterpillar (CAT), which may thrive under all market conditions. Both companies have shown impressive performance over the past five years.

Clean Harbors has achieved 13.5% annual revenue growth during this period, thanks in part to share buybacks that enabled its earnings per share to grow faster than its revenue. The company's free cash flow margin jumped by 5.9 percentage points over the last five years, providing additional resources for growth initiatives or dividend payments.

Caterpillar has also demonstrated strong performance with above-market 10.2% annual sales growth over the past five years. Share repurchases enabled its earnings per share to grow faster than revenue gains, and its free cash flow margin expanded by 6.9 percentage points during this period.