Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.

Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here is one low-volatility stock providing safe-and-steady growth and two that may not keep up.

Two Stocks to Sell:

Choice Hotels (CHH)

Rolling One-Year Beta: 0.65

With almost 100% of its properties under franchise agreements, Choice Hotels (NYSE: CHH) is a hotel franchisor known for its diverse brand portfolio including Comfort Inn, Quality Inn, and Clarion.

Why Are We Out on CHH?

1. Revenue per room has disappointed over the past two years due to weaker trends in its daily rates and occupancy levels
2. Estimated sales decline of 1.5% for the next 12 months implies a challenging demand environment
3. Eroding returns on capital suggest its historical profit centers are aging

Choice Hotels’s stock price of $104.98 implies a valuation ratio of 14.6x forward P/E. Read our free research report to see why you should think twice about including CHH in your portfolio.

PACCAR (PCAR)

Rolling One-Year Beta: 0.91

Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.

Why Are We Hesitant About PCAR?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Projected sales decline of 4.8% over the next 12 months indicates demand will continue deteriorating
3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

PACCAR is trading at $98.25 per share, or 18.2x forward P/E. To fully understand why you should be careful with PCAR, check out our full research report (it’s free for active Edge members).

One Stock to Watch:

RBC Bearings (RBC)

Rolling One-Year Beta: 0.91

With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE: RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.

Why Do We Like RBC?

1. Annual revenue growth of 18.9% over the past five years was outstanding, reflecting market share gains this cycle
2. Projected revenue growth of 14.5% for the next 12 months is above its two-year trend, pointing to accelerating demand
3. Excellent operating margin of 20.2% highlights the efficiency of its business model, and its rise over the last five years was fueled by some leverage on its fixed costs

At $373.99 per share, RBC Bearings trades at 31.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% 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

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