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1 Safe-and-Steady Stock with Competitive Advantages and 2 to Question

BF.B 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.

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

Two Stocks to Sell:

Brown-Forman (BF.B)

Rolling One-Year Beta: 0.05

Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE: BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.

Why Do We Think Twice About BF.B?

  1. Muted 2.6% annual revenue growth over the last three years shows its demand lagged behind its consumer staples peers
  2. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  3. Projected sales growth of 1.4% for the next 12 months suggests sluggish demand

Brown-Forman is trading at $34.94 per share, or 19.5x forward P/E. Read our free research report to see why you should think twice about including BF.B in your portfolio.

MasterCraft (MCFT)

Rolling One-Year Beta: 0.88

Started by a waterskiing instructor, MasterCraft (NASDAQ: MCFT) specializes in designing, manufacturing, and selling sport boats.

Why Are We Hesitant About MCFT?

  1. Performance surrounding its boats sold has lagged its peers
  2. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 9.2 percentage points over the next year
  3. Diminishing returns on capital suggest its earlier profit pools are drying up

MasterCraft’s stock price of $18.41 implies a valuation ratio of 13.8x forward P/E. Check out our free in-depth research report to learn more about why MCFT doesn’t pass our bar.

One Stock to Watch:

Huron (HURN)

Rolling One-Year Beta: 0.48

Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ: HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions.

Why Could HURN Be a Winner?

  1. Annual revenue growth of 13.1% over the last two years was superb and indicates its market share increased during this cycle
  2. Adjusted operating margin improvement of 8.6 percentage points over the last five years demonstrates its ability to scale efficiently
  3. Share buybacks catapulted its annual earnings per share growth to 34.7%, which outperformed its revenue gains over the last two years

At $152 per share, Huron trades at 20.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

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.

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