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3 Dawdling Stocks in Hot Water

BYND Cover Image

A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.

Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. Keeping that in mind, here are three low-volatility stocks that don’t make the cut and some better opportunities instead.

Beyond Meat (BYND)

Rolling One-Year Beta: 0.60

A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ: BYND) is a food company specializing in alternatives to traditional meat products.

Why Do We Think BYND Will Underperform?

  1. Shrinking unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
  2. Negative free cash flow raises questions about the return timeline for its investments
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Beyond Meat’s stock price of $2.51 implies a valuation ratio of 0.5x forward price-to-sales. Read our free research report to see why you should think twice about including BYND in your portfolio.

Dole (DOLE)

Rolling One-Year Beta: 0.57

Known for its delicious pineapples and Hawaiian roots, Dole (NYSE: DOLE) is a global agricultural company specializing in fresh fruits and vegetables.

Why Do We Steer Clear of DOLE?

  1. Annual revenue declines of 3% over the last three years indicate problems with its market positioning
  2. Sales are projected to be flat over the next 12 months and imply weak demand
  3. Gross margin of 8.4% is below its competitors, leaving less money to invest in areas like marketing and production facilities

At $15.32 per share, Dole trades at 10.7x forward price-to-earnings. If you’re considering DOLE for your portfolio, see our FREE research report to learn more.

Acadia Healthcare (ACHC)

Rolling One-Year Beta: 0.84

With a network of over 250 facilities serving patients in 38 states and Puerto Rico, Acadia Healthcare (NASDAQ: ACHC) operates facilities providing mental health and substance use disorder treatment services across the United States.

Why Does ACHC Fall Short?

  1. Sales stagnated over the last five years and signal the need for new growth strategies
  2. Underwhelming admissions over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
  3. 38.5 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Acadia Healthcare is trading at $23.50 per share, or 6.9x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than ACHC.

Stocks We Like 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 Growth Stocks for this month. 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.

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