Low Volatility Stocks to Watch as Tech Selling Pushes Investors Toward Consumer Staples

Tech stocks are under pressure after weak updates from TSMC and Netflix, major indices are sliding, and concerns around AI spending, geopolitics, inflation, and debt are back on center stage. In sharp selloffs like this, many investors look beyond the hottest growth stories and focus on companies that historically show lower volatility and steadier profiles. This article walks through three low volatility stocks exposed to the current news cycle, explaining why each could be relatively better positioned or more insulated compared with the broader market, and what that might mean for your portfolio decisions today.

Coca-Cola HBC (LSE:CCH)

Overview: Coca-Cola HBC is a major bottler that produces, sells, and distributes Coca-Cola and other non-alcoholic drinks across Central and Eastern Europe, parts of Western Europe, Nigeria, and other international markets. It supplies supermarkets, convenience stores, hospitality venues, vending machines, and e-commerce channels.

Operations: Coca-Cola HBC generates about €11.6b in revenue primarily from the sale and distribution of non-alcoholic ready to drink beverages across markets including Italy, Poland, Switzerland, the Russian Federation, and other regions.

Market Cap: £18.1b

Coca-Cola HBC provides exposure to a large, dividend paying consumer staples company that can behave differently from high growth tech stocks when markets are stressed. Its wide portfolio across soft drinks, hydration, energy and premium spirits, together with investments in digital tools and route to market, supports returns on equity and margins, while broad geographic exposure spreads demand across both developed and emerging economies. At the same time, reliance on sugary drinks, regulation around sugar and packaging, and macro pressures in markets like Nigeria and Egypt can create earnings swings and cost pressures that matter for a low volatility investor. The fuller picture shows how those trade offs look when valuations and dividend commitments are taken into account.

Coca-Cola HBC’s wide mix of brands and regions could be masking a very different risk reward profile to fast moving tech stocks, and the 3 key rewards and 1 important warning sign might highlight the one pressure point low volatility investors are overlooking.

Delegat Group (NZSE:DGL)

Overview: Delegat Group is a New Zealand based wine producer that grows, makes, and sells premium wines under the Oyster Bay, Barossa Valley Estate, and Delegat brands to retailers and distributors across the UK, Europe, North America, Australia, New Zealand, and Asia.

Operations: Delegat Group generates around NZ$360.6m in revenue through Delegat Limited, with additional contributions from Delegat USA at NZ$161.9m, Delegat Europe at NZ$117.5m, Delegat Australia at NZ$57.1m, and NZ$45.4m from other activities, partly offset by NZ$392.0m of eliminations and adjustments.

Market Cap: NZ$434.9m

Delegat Group stands out in a tech led selloff because the wine business sits closer to consumer staples, where demand can be steadier than big ticket IT spending. However, the stock still trades at a P/E well below many global beverage peers and an estimated fair value. Earnings have recently rebounded strongly and are forecast to grow further, supported by upgraded guidance for higher global case sales and improved profit expectations. A 4.65% dividend provides cash returns along the way. The trade off is a balance sheet that leans heavily on external borrowing and a harvest that recently declined 19%, which could matter if conditions tighten, so investors who want lower volatility exposure need to weigh how much that debt and agricultural variability changes the story.

Delegat Group’s rebound and upgraded case sales guidance hint at an earnings story the current P/E and 4.65% yield may not fully reflect, and the analyst forecasts for Delegat Group reveals how that outlook collides with its heavy borrowing and smaller harvest

Nichols (AIM:NICL)

Overview: Nichols is a UK based soft drinks company behind brands such as Vimto, Levi Roots and SLUSH PUPPiE, supplying squash, still and carbonated drinks, flavoured water, energy and frozen beverages to retailers, wholesalers and leisure venues in the UK, the Middle East, Africa and other international markets.

Operations: Nichols generates revenue primarily from its Packaged division at £135.19m, with an additional £39.86m from its Out of Home segment.

Market Cap: £363.5m

Nichols offers a blend of income and quality for investors looking beyond volatile tech stocks, with earnings growth, a P/E that sits well below some beverage peers and a 3.39% dividend yield, all backed by recognised brands like Vimto and new health focused launches such as the Myprotein Clear Whey Protein Water range. The flip side is a dividend that is not well covered by free cash flow, a reliance on external funding and heavy dependence on a few core brands, which could become more challenging if competition increases or regulation around sugar and sustainability tightens. How those strengths and fault lines balance out is an important consideration for a low volatility portfolio anchored in consumer demand rather than AI cycles.

Nichols’ earnings profile, P/E and 3.39% yield suggest the headline story might not match the full risk reward trade off. The 3 key rewards and 2 important warning signs (1 is major!) could reveal the one fault line investors are underestimating.

The three stocks covered here are just a sample of what the full low volatility idea turns up, and the Low Volatility Equity Stocks screener surfaces 26 more companies with similarly detailed stories that could fit a steadier, lower beta profile. Use Simply Wall St to identify, filter, and analyze the specific catalysts, risk profiles, dividends, and balance sheet traits that matter most so you can focus on the lower volatility opportunities that best match your own approach.

Take Control of Your Investment Journey

If Coca-Cola HBC or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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