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2 Safe-and-Steady Stocks with Exciting Potential and 1 to Question

MCW 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. Keeping that in mind, here are two low-volatility stocks that could succeed under all market conditions and one that may not keep up.

One Stock to Sell:

Mister Car Wash (MCW)

Rolling One-Year Beta: 0.66

Formerly known as Hotshine Holdings, Mister Car Wash (NYSE: MCW) offers car washes across the United States through its conveyorized service.

Why Should You Sell MCW?

  1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
  2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
  3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $7.27 per share, Mister Car Wash trades at 15.7x forward P/E. Check out our free in-depth research report to learn more about why MCW doesn’t pass our bar.

Two Stocks to Watch:

W.W. Grainger (GWW)

Rolling One-Year Beta: 0.79

Founded as a supplier of motors, W.W. Grainger (NYSE: GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.

Why Could GWW Be a Winner?

  1. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
  2. Share buybacks catapulted its annual earnings per share growth to 18.1%, which outperformed its revenue gains over the last five years
  3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its rising returns show it’s making even more lucrative bets

W.W. Grainger is trading at $1,099 per share, or 26x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Centene (CNC)

Rolling One-Year Beta: 0.04

Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE: CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.

Why Does CNC Stand Out?

  1. 15.5% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
  2. Massive revenue base of $169.3 billion gives it meaningful leverage when negotiating reimbursement rates
  3. Earnings per share have massively outperformed its peers over the last five years, increasing by 14.8% annually

Centene’s stock price of $56.38 implies a valuation ratio of 7.3x 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

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 183% over the last five years (as of March 31st 2025).

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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

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