With Kevin Warsh stepping in as Federal Reserve Chair and dropping forward guidance, interest rate moves may now surprise markets more often, and price swings could be sharper when big economic data hits. For investors who prefer steadier returns over drama, that shift puts extra focus on larger companies with moderate volatility, solid fundamentals, and meaningful dividend potential. This article looks at how that backdrop links to our Low Volatility Stocks screener and discusses 3 stocks that appear relatively well positioned to handle a bumpier ride in sentiment, along with reasons they may merit a closer look in the current environment.

Zimmer Biomet Holdings (ZBH)

Overview: Zimmer Biomet Holdings is a medical technology company that designs and manufactures implants, surgical tools, and digital and robotic systems used in joint replacement and other bone and soft tissue procedures, serving surgeons and hospitals worldwide.

Operations: Zimmer Biomet generates about US$5.3b in the Americas, US$1.9b in Europe, the Middle East and Africa, and US$1.3b in Asia Pacific, with roughly US$4.9b from the United States and US$3.5b from international markets.

Market Cap: US$16.9b

Zimmer Biomet operates in a choppier rate backdrop, and its core business in hips, knees, and extremities is linked to essential procedures. Its ROSA robotics and ZBEdge data platform are intended to shift more revenue into higher margin, recurring digital solutions. Forecast earnings growth near the low teens and analyst expectations for rising margins sit alongside a P/E that is below many US medical equipment peers. This combination may appeal to investors who prioritize steadier cash flows. At the same time, a high reliance on debt, recent one off losses, and execution risk around acquisitions such as Pacira’s iovera device and robotics expansion mean investors may wish to weigh balance sheet resilience and integration progress carefully.

Zimmer Biomet’s earnings and margin story appears to be still missing a key chapter, with valuation and cash flows pulling in different directions. Before you decide how it fits your portfolio, review the 3 key rewards and 2 important warning signs

Elevance Health (ELV)

Overview: Elevance Health is a large US health benefits company that provides medical, pharmacy, behavioral health, and related insurance and care services under brands such as Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon, serving individuals, employers, and government programs like Medicare and Medicaid.

Operations: Elevance Health generates about US$168.2b from Health Benefits, US$43.9b from CarelonRx pharmacy services, and US$29.1b from Carelon Services, with total reported revenue of roughly US$200.4b almost entirely in the United States.

Market Cap: US$90.7b

For investors watching volatility pick up as the Federal Reserve stops telegraphing its next move, Elevance Health stands out as a large, diversified healthcare stock tied to essential insurance coverage rather than rate sensitive demand. The company combines sizeable revenues from commercial, Medicare, and Medicaid plans with fee based pharmacy and care management services in its Carelon units. Together these can spread risk across different funding sources. At the same time, margin pressure from higher medical costs, regulatory disputes such as the current Medicare Advantage bonus lawsuit, and a funding mix that leans on external borrowing are real watchpoints. A key consideration is whether Elevance’s investment in data, AI, and HealthOS efficiency tools is enough to keep earnings more predictable when markets become less so.

Elevance Health’s earnings story may be quietly decoupling from market swings as its insurance and Carelon units scale. Get the full picture in the analysis report for Elevance Health to see what the headline margins might be masking.

STERIS (STE)

Overview: STERIS is a healthcare company focused on infection prevention, supplying hospitals, pharmaceutical manufacturers, and life science facilities with cleaning chemistries, sterilizers, surgical equipment, and related services that keep instruments, operating rooms, and cleanrooms safe to use.

Operations: STERIS generates about US$4.2b from Healthcare, US$1.1b from Applied Sterilization Technologies, and US$0.6b from Life Sciences, with roughly US$4.3b earned in the United States and US$1.6b from Ireland and other international markets.

Market Cap: US$21.3b

STERIS attracts attention in a less predictable Federal Reserve backdrop because it sells essential infection prevention products and services, supports a large base of recurring consumables and service revenue, and has recently reported rising net margins alongside steady dividend payments and active buybacks. Earnings and cash flow quality look relatively strong for a low volatility stock. However, slower forecast revenue growth around 6% and soft spots such as recent earnings misses, insider selling, and exposure to tariffs, reimbursement pressure, and M&A execution risk mean the story is more nuanced than a simple defensive label. The key question is whether its mix of recurring platform earnings and disciplined capital returns is enough to offset those pressure points when market swings pick up.

STERIS’s recurring infection prevention revenues and capital returns hint at a sturdier story than its recent soft spots suggest, and the 4 key rewards and 1 important warning sign could reveal the one pressure point that really matters next.

The three stocks covered here are only the start, and the full Low Volatility Stocks screener surfaces 37 more larger companies with moderate volatility, solid fundamentals, and dividend potential that could fit the same low drama profile. Use Simply Wall St to identify, analyze, and filter for the specific catalysts and narratives that matter most to you so you can focus on the highest conviction opportunities in this low volatility corner of the market.

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If STERIS 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.