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1 Safe-and-Steady Stock with Exciting Potential and 2 to Be Wary Of

STZ Cover Image

Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.

Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. That said, here is one low-volatility stock that could succeed under all market conditions and two stuck in limbo.

Two Stocks to Sell:

Constellation Brands (STZ)

Rolling One-Year Beta: 0.31

With a presence in more than 100 countries, Constellation Brands (NYSE: STZ) is a globally renowned producer and marketer of beer, wine, and spirits.

Why Does STZ Give Us Pause?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Sales are projected to tank by 6.6% over the next 12 months as demand evaporates
  3. Efficiency has decreased over the last year as its operating margin fell by 28.3 percentage points

At $188.60 per share, Constellation Brands trades at 13.7x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than STZ.

Dun & Bradstreet (DNB)

Rolling One-Year Beta: 0.30

Known for its proprietary D-U-N-S Number that serves as a unique identifier for businesses worldwide, Dun & Bradstreet (NYSE: DNB) provides business decisioning data and analytics that help companies evaluate credit risks, verify suppliers, enhance sales productivity, and gain market visibility.

Why Are We Cautious About DNB?

  1. 3.5% annual revenue growth over the last two years was slower than its business services peers
  2. Earnings per share were flat over the last two years and fell short of the peer group average
  3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Dun & Bradstreet’s stock price of $9.14 implies a valuation ratio of 8.4x forward price-to-earnings. Read our free research report to see why you should think twice about including DNB in your portfolio.

One Stock to Watch:

The Ensign Group (ENSG)

Rolling One-Year Beta: 0.14

Founded in 1999 and named after a naval term for a flag-bearing ship, The Ensign Group (NASDAQ: ENSG) operates skilled nursing facilities, senior living communities, and rehabilitation services across 15 states, primarily serving high-acuity patients recovering from various medical conditions.

Why Could ENSG Be a Winner?

  1. Unit sales averaged 14.3% growth over the past two years and imply healthy demand for its products
  2. Estimated revenue growth of 14.2% for the next 12 months implies its momentum over the last two years will continue
  3. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 19.7% annually

The Ensign Group is trading at $124.10 per share, or 20.2x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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 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 Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.

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