Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need.
Two Stocks to Sell:
J&J Snack Foods (JJSF)
Rolling One-Year Beta: 0.15
Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ: JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers.
Why Are We Hesitant About JJSF?
- Smaller revenue base of $1.59 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Estimated sales growth of 2.8% for the next 12 months implies demand will slow from its three-year trend
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $114.55 per share, J&J Snack Foods trades at 22.5x forward P/E. To fully understand why you should be careful with JJSF, check out our full research report (it’s free).
Plug Power (PLUG)
Rolling One-Year Beta: 0.68
Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ: PLUG) provides hydrogen fuel cells used to power electric motors.
Why Should You Sell PLUG?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 8.7% annually over the last two years
- Free cash flow margin shrank by 531.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Plug Power’s stock price of $0.82 implies a valuation ratio of 1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PLUG.
One Stock to Watch:
United Parks & Resorts (PRKS)
Rolling One-Year Beta: 0.54
Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.
Why Does PRKS Stand Out?
- Excellent operating margin of 26.9% highlights the efficiency of its business model
- Share buybacks catapulted its annual earnings per share growth to 39.1%, which outperformed its revenue gains over the last five years
- Returns on capital are growing as management capitalizes on its market opportunities
United Parks & Resorts is trading at $43.05 per share, or 8.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive 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 5 Strong Momentum Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
