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1 Safe-and-Steady Stock on Our Buy List and 2 to Ignore

CHD 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.

Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock providing safe-and-steady growth and two stuck in limbo.

Two Stocks to Sell:

Church & Dwight (CHD)

Rolling One-Year Beta: -0.07

Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE: CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.

Why Are We Cautious About CHD?

  1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  2. Demand will likely fall over the next 12 months as Wall Street expects flat revenue
  3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 4.9 percentage points

Church & Dwight is trading at $95.50 per share, or 25.5x forward P/E. If you’re considering CHD for your portfolio, see our FREE research report to learn more.

Figs (FIGS)

Rolling One-Year Beta: 0.72

Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE: FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.

Why Is FIGS Not Exciting?

  1. Demand for its offerings was relatively low as its number of active customers has underwhelmed
  2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 26.9% annually while its revenue grew
  3. Negative returns on capital show that some of its growth strategies have backfired

At $4.43 per share, Figs trades at 61x forward P/E. Check out our free in-depth research report to learn more about why FIGS doesn’t pass our bar.

One Stock to Buy:

United Therapeutics (UTHR)

Rolling One-Year Beta: 0.61

Founded by a mother seeking treatment for her daughter's pulmonary arterial hypertension, United Therapeutics (NASDAQ: UTHR) develops and commercializes medications for chronic lung diseases and other life-threatening conditions, with a focus on pulmonary hypertension treatments.

Why Do We Love UTHR?

  1. Impressive 22.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
  3. Returns on capital are climbing as management makes more lucrative bets

United Therapeutics’s stock price of $303.40 implies a valuation ratio of 10.4x forward P/E. Is now the right time to buy? 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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.

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