ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

1 Safe-and-Steady Stock to Own for Decades and 2 to Steer Clear Of

WEN Cover Image

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:

Wendy's (WEN)

Rolling One-Year Beta: 0.22

Founded by Dave Thomas in 1969, Wendy’s (NASDAQ: WEN) is a renowned fast-food chain known for its fresh, never-frozen beef burgers, flavorful menu options, and commitment to quality.

Why Is WEN Not Exciting?

  1. 5.6% annual revenue growth over the last five years was slower than its restaurant peers
  2. Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
  3. High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $12.70 per share, Wendy's trades at 12.3x forward price-to-earnings. Check out our free in-depth research report to learn more about why WEN doesn’t pass our bar.

Wiley (WLY)

Rolling One-Year Beta: 0.74

With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE: WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals.

Why Should You Sell WLY?

  1. Annual sales declines of 1.6% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Flat earnings per share over the last two years underperformed the sector average
  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.3 percentage points

Wiley is trading at $41.65 per share, or 17.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including WLY in your portfolio.

One Stock to Buy:

BellRing Brands (BRBR)

Rolling One-Year Beta: 0.86

Spun out of Post Holdings in 2019, Bellring Brands (NYSE: BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.

Why Will BRBR Beat the Market?

  1. Products are selling at a rapid clip as its unit sales averaged an outstanding 21.2% growth rate over the past two years
  2. Earnings per share grew by 30.9% annually over the last three years, massively outpacing its peers
  3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

BellRing Brands’s stock price of $73.21 implies a valuation ratio of 32.2x forward price-to-earnings. Is now the time to initiate a position? Find out in our full 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 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  244.22
+0.00 (0.00%)
AAPL  270.37
+0.00 (0.00%)
AMD  256.12
+0.00 (0.00%)
BAC  53.45
+0.00 (0.00%)
GOOG  281.82
+0.00 (0.00%)
META  648.35
+0.00 (0.00%)
MSFT  517.81
+0.00 (0.00%)
NVDA  202.49
+0.00 (0.00%)
ORCL  262.61
+0.00 (0.00%)
TSLA  456.56
+0.00 (0.00%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.