Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here is one low-volatility stock providing safe-and-steady growth and two stuck in limbo.
Two Stocks to Sell:
Gray Television (GTN)
Rolling One-Year Beta: 0.40
Specializing in local media coverage, Gray Television (NYSE: GTN) is a broadcast company supplying digital media to various markets in the United States.
Why Are We Out on GTN?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Sales are projected to tank by 11.7% over the next 12 months as demand evaporates further
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 8.3 percentage points over the next year
At $3.97 per share, Gray Television trades at 0.7x forward EV-to-EBITDA. To fully understand why you should be careful with GTN, check out our full research report (it’s free).
Tri Pointe Homes (TPH)
Rolling One-Year Beta: 0.54
Established in 2009 in California, Tri Pointe Homes (NYSE: TPH) is a United States homebuilder recognized for its innovative and sustainable approach to creating premium, life-enhancing homes.
Why Do We Pass on TPH?
- Backlog has dropped by 6.9% on average over the past two years, suggesting it’s losing orders as competition picks up
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 9.5% annually, worse than its revenue
- Free cash flow margin dropped by 8.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Tri Pointe Homes is trading at $31.25 per share, or 10.1x forward P/E. If you’re considering TPH for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Waste Connections (WCN)
Rolling One-Year Beta: 0.37
Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE: WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.
Why Do We Watch WCN?
- Annual revenue growth of 10.5% over the past five years was outstanding, reflecting market share gains this cycle
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- WCN is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Waste Connections’s stock price of $191.46 implies a valuation ratio of 35.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
